Switzerland -St. Gallen canton cuts wages to avoid raising taxes -July 5, 2012

The north-eastern cantonal government of Sankt Gallen has announced it intends to cut civil servants’ wages by 1.5% in order to reach its retrenchment target. The regional government states that overall wage cuts are necessary to avoid redundancies. Public sector union vpod has announced it is fighting the decision and says the government strategy to cut wages for the sake of tax competition is unsustainable, suggesting incomes need to be increased rather than expenses cut.

German: http://www.vpod.ch/aktuell/nachrichten/ansicht/article/sparen-in-sankt-gallen ...

 

This article was published in the Collective Bargaining Newsletter. It aims to facilitate information exchange between trade unions and to support the work of ETUC's collective bargaining committee. For more information, please contact the editor Jan Cremers, Amsterdam Institute for Advanced Labour Studies (AIAS) cbn-aias@uva.nl or the communications officer at the ETUI, Mariya Nikolova mnikolova@etui.org. All rights reserved. The ETUI is not responsible for the content of external internet sites.

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