A collective labour agreement is concluded when an employers' association (e.g. trade union) agrees with an employer (e.g. Migros, Swisscom, etc.) or an employers' association (e.g. association of master builders, GastroSuisse, etc.) on binding minimum standards for working conditions. The negotiated conditions concern in particular working hours, notice periods, sickness and accident benefits and, precisely, minimum wages. In principle, they apply only to the parties to the agreement, i.e. to the employees affiliated to the union and the employers or the members of the employers' association. In sectors without a collective agreement there is a certain potential for abuse. In the past there have been cases of wage dumping in the construction, ancillary construction and hospitality industries. In addition, the problem has been exacerbated by foreign companies that have carried out contracts in Switzerland but have not complied with the local laws. To counteract the distortions of competition caused by this, the Federal Council can, at the request of the contracting parties and under certain conditions, declare a collective labour agreement generally binding. As a result of the declaration of general applicability, the provisions of the collective labour agreement no longer apply only to the contracting parties, but to all companies and employees working in the relevant sector. Accordingly, foreign companies that carry out orders in Switzerland must also pay their employees the Swiss minimum wage. The declaration of general applicability of a collective labour agreement ensures a level playing field in this respect for all employers in the sector.
Like everything in life, the CBA on Staff Leasing also has advantages and disadvantages. The greatest advantage of setting minimum wages can be seen in the objective of providing employees with a decent wage. At the same time, the introduction of minimum wages can effectively combat wage dumping. In addition, the equality of men and women with regard to wages is promoted, since the minimum wages are granted irrespective of the gender of the employee.
One disadvantage of the CBA Staff Leasing is that the company employing the worker may no longer be able to reward outstanding performance financially. This is the case if the increase in minimum wages in an industry affects a company that has only a limited wage budget. Once the increased wages are paid, the company no longer has any capital available to reward outstanding employee performance. In addition, it may also appear objectionable that, as described above, only the hired-out personnel are subject to the CBA Staff Leasing. While the employing company has to comply with the minimum wages of the CBA Staff Leasing with regard to hired personnel, it is not bound to any specifications regarding wage levels and bonuses for permanent employees. This can lead to the employment of leased personnel becoming financially unattractive for the company employing them because of the prescribed minimum wage level. This in turn has a negative impact on the 350,000 - 400,000 temporary workers in Switzerland.
The positive and negative points mentioned must be weighed against each other. It is the task of the respective contractual partners to ensure that the advantages and disadvantages are balanced.