Collective labour contracts
Collective bargaining agreements are concluded between employer and employee associations. By doing so, the parties define the minimum conditions (e.g. minimum salaries) that individual employment contracts cannot go below. Employers and employees are essentially free to decide whether they would like to join a collective bargaining agreement or not. In Switzerland, there are about ten such agreements that are generally binding and about 1,500 that are not generally binding. The former group applies to the whole of the sector in question, while the latter only applies if the contractual parties are members of the relevant associations.
If there are differences of opinion between an employer and the workforce, an amicable solution is sought internally. This fundamental approach dates back to the “peace agreement” between Swiss employers and employee organizations of 1937. In accordance with the mutual agreement to maintain peace, workers and management seek to resolve conflicts through discussions. Solution-oriented labour market partnerships are still the norm today.
Cooperation between employers and employees (2010)
1 = total confrontation, 7 = total cooperation
Average: 4.4
Source: The Global Competitiveness Report 2010-2011, World Economic Forum