The value of trade unions
There will hardly be an SMV member who doubts the sense of a strong musicians' union. The fact that trade unions have a positive influence on the economy and society is also summarized in a new study by the Swiss Federation of Trade Unions (SGB).
The SGB has evaluated over 100 studies for its research on trade unions and collective employment agreements (CEAs). Research was conducted in particular on the topics of wages, working conditions, employment, unemployment, productivity and innovation activity. Of course, not all of the results are applicable or relevant to our profession. However, it is worth reminding musicians of the importance and value of trade unions, which have been fighting for working people for over 100 years. Trade unions negotiate collective labor agreements with employers and thus replace individual wage policies, which affects around half of wage earners in Switzerland. The researchers have identified the following three central theses: Unions and CLAs can increase wages and reduce inequalities, wage increases come at the expense of profits rather than employment, and furthermore, unions can increase productivity.
Smaller pay gaps, greater pay equality
Looking at the details, it appears that CLA minimum wages are normally within the range of wages customary in the industry. CLAs generally make it more difficult to open a wage gap and lead to smaller wage differences than fully individual wage negotiations. In Switzerland, the trade unions have an additional task compared to most countries: since the labor market was opened up to foreign companies, CLA minimum wages and strict controls prevent foreign companies from undercutting the usual wages with dumping wages and squeezing out local employees and companies.
Another key concern of the trade unions is equal pay between the sexes. According to the Federal Statistical Office, women were still paid 18% less than men in 2022. Almost 7 percentage points cannot be explained by differences in education, occupations and sectors. Women are also systematically passed over for recruitment and promotions. Trade unions combat direct wage discrimination through CLA minimum wages, specific provisions on equal pay, participation in the workplace, political campaigns and awareness-raising work. Trade unions also help to ensure that jobs performed predominantly by women are upgraded.
The fact that higher wages come at the price of higher unemployment is an accusation that the researchers cannot substantiate. On the contrary, it may even be worthwhile for employers to produce more and employ more people if wages are higher.
A new view of the trade unions
In addition to wages, working conditions are very important for employees. This is why trade unions demanded the eight-hour working day early on, lowered the retirement age in Switzerland to 60 in the construction industry, for example, and campaigned for more staff in the care sector. Generally speaking, working hours are shorter when trade unions negotiate at least part of them. In Switzerland, CLAs are particularly important for health and safety at work because the legal requirements are weak.
Trade unions do not consciously try to influence productivity, innovation or investment and therefore economic growth. Nevertheless, many of their activities, such as the CLA minimum wage, could have an impact. While trade unions tended to be associated with less innovation in older studies, the picture has changed today: Trade unions seem to tend to strengthen product innovations. When products are newly invented or further developed, companies can sell more, which benefits wage earners because growing companies have more scope for higher wages and new jobs.
Economists also recognize the importance of trade unions for society beyond the labour market and see them much more positively today. Trade unions have fought for important basic social rights. In addition, their political fight for progressive taxes and political stability is important, and they are also successfully combating poverty as a result.
It is to be hoped that the new image of trade unions from science will also be reflected in politics in Switzerland.
- Joël Bühler and Daniel Lampart, The value of trade unions, A meta-study on the influence of trade unions and collective labor agreements on wages, working conditions and productivity, Dossier No. 153, publication series of the Swiss Federation of Trade Unions, December 2022
