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8 February 2016

Switzerland: Geneva moves against wage dumping

Wage dumping is rampant throughout Switzerland. Now, BWI affiliate Unia has successfully put pressure on the City of Geneva to take action against the fraudsters and to go beyond the requirements of federal law. Situated on the Swiss border, Geneva is particularly vulnerable to wage dumping, and the pressure is aggravated by the city’s high rate of unemployment.

The new regulation introduces strict subcontracting rules. The main enterprise will be responsible for the wage and social insurance payments of all subcontractors. The latter will themselves not be allowed to subcontract and there will be tough penalties for fraudsters. A social fund is established to pay the wages of aggrieved workers should those wages no longer be guaranteed by the principal company.

For Unia, the examples of Geneva and Basel-Land show that Switzerland’s measures to accompany migration for employment must be strengthened. These cases of progress should inspire the federal government and the nation’s other cantons.