News A new CCT, the fourteenth to date, has been signed between the Employers’ Federation (CP) and the trade union Unia. It will enter into force on 1st January 2012.
On 12 October, at the Hôtel DuPeyrou in Neuchâtel, the CP and Unia signed the fourteenth version of the CCT. After eight months of negotiations and a number of compromises on both sides, this new document has been validated and will enter into force on 1st January next year for a period of five years, as has been customary since 1997. 430 firms and around 42,000 employees are affected by this «labour pact» which serves as the working basis for firms and the union in good economic times and in bad.
What are the major changes?
The employers’ contribution to treatment costs (sickness fund) will increase from 130 to 160 francs per month. It will remain at 60 francs for children insofar as this amount virtually covers existing premiums.
Another important material gain is the creation of a family and additional training allowance of 30 francs. This will be added to sums currently in force from 1st January 2012 and to some extent offsets the scrapping of the household allowance (60 francs).
Minimum starting wages are also changing: an increase of 80, 100 or 117 francs according to the region (the two highest amounts applying to regions with the lowest wages) has been agreed.
The median watch industry wage – which serves as the base for calculating the annual cost of living increase, amongst other things – has been adapted and revised downwards. With too much leeway in its previous calculation, incorporating parameters unrelated to wages in the strict sense, negotiations have led to a reduction of around 13%. Currently, it is 5,942 francs. Calculated on the new basis, it will fall to 5,170 francs. On the plus side, this will not involve any actual wage reductions; however the rate of wage increases will be slowed as a result.
In terms of quality of life, fathers-to-be have something to be pleased about. Paternity leave will rise from three to five paid days. This increase means they will be able to play a bigger part in welcoming their new child into the family.
The most important innovation to point out is progressive retirement. Since 2004, workers have already had the possibility, one year before the legal age of pension entitlement, of taking early retirement thanks to a bridging annuity of 24,000 francs paid exclusively by employers. In future, they will be able to choose between this system and modulated or progressive retirement. Two years before the legal retirement age, employees will be able to reduce their working time by up to 20%. The employer will pay half of the loss in wages, but will continue to pay all second pillar contributions (employer and employee share). By the same token, one year before their official retirement, employees will be able to reduce their working time by up to 40%. It should be noted that in order to benefit from progressive retirement, employees will need to have worked for at least ten years with the firm or group. This new system will be an attractive alternative for those who prefer to prepare gradually for retirement. It is also an excellent way to facilitate the smooth transfer of know-how.
This new Collective Agreement reflects a continued and shared commitment between the CP and the trade union Unia to guarantee peaceful labour relations in the Swiss watch industry.
October 25, 2011
