Swiss to vote in referendum on world's highest minimum wage
Fears proposed £14.70 an hour will particularly hit manufacturing sector, which accounts for more than 20% of Switzerland's GDP
Switzerland will put a proposal for the world's highest minimum wage to a national referendum on Sunday.
The proposal is for a 22 Swiss francs (£14.70) an hour and if voted through it would put a salary floor under the average 35-hour week of more than £27,000.
Ministers have fought the proposal, made by the SGB union and supported by the Socialist and Green parties, saying it will put smaller firms out of business.
While Switzerland is renowned as a home for hedge fund managers, a secretive banking sector and one of the highest per capita incomes in the world, more than 20% of its GDP comes from an increasingly beleaguered manufacturing sector.
A recent opinion poll by gfs.bern found that 64% of voters were against the proposal, but in a recent referendum voters unexpectedly forced the parliament to draw up plans to curb EU immigration.
Cristina Gaggini, director of the Geneva office of the Swiss business association, Economiesuisse, told the BBC: "I think it's an own goal, for workers as well as for small companies in Switzerland."
She added: "Studies show that a minimum wage can lead to much more unemployment and poverty than it helps people. And for very small companies it would be very problematic to afford such a high salary."
The move follows a string of campaigns across the developed world for higher basic wages. Two weeks ago, the mayor of Seattle, Washington, unveiled a plan for a city-wide minimum wage of $15 (£8.91)), more than double the federal minimum rate.
Next month the Bundestag is due to vote on a bill to introduce Germany's first national minimum wage of €8.50 (£7). Under the Swiss system, parliament can call a referendum or citizens can demand one if they can gather 100,000 signatures in support.
The government sets out its position on the issue - and has won 75%t of plebiscites - but does not fall if voters ignore it.
