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 ...


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