The importance of unions
There are few USDAM members who would question the value of a strong musicians' union. The fact that unions exert a positive influence on the economy and society is also demonstrated by a new study from the Swiss Union of Trade Unions (USS).
For its research on unions and collective bargaining agreements (CBAs), the USS evaluated over 100 studies, looking in particular at wages, working conditions, employment, unemployment, as well as productivity and capacity for innovation. Of course, not all the results are applicable or relevant to our profession. But it is still worthwhile for musicians to remember the importance and value of unions, which have been working for workers for over 100 years. Unions negotiate collective agreements with employers, replacing individual wage policies. In Switzerland, this concerns around half of all employees. The researchers put forward the following three central theses: unions and collective bargaining agreements can increase wages and reduce inequality, wage increases are more likely to be detrimental to profits than to employment, and unions can increase productivity.
Less pay differentials, more equal pay
Considered in detail, it appears that minimum wages under CLAs are generally within the range of usual wages in the sector. Wage differentials are less likely to occur with a CLA, and wage differences are smaller than in systems where wage negotiations are conducted exclusively on an individual basis. Compared to most other countries, trade unions in Switzerland have an additional mission: since the opening up of the labor market to foreign companies, minimum wages set by collective bargaining agreements, together with strict controls, deter foreign companies from undercutting wages and driving out local companies and employees.
Equal pay for men and women is another key concern for the unions. According to the Swiss Federal Statistical Office, in 2022, women will still earn 18% less than men. Almost 7 percentage points cannot be explained by differences in training, activity or sector. When it comes to hiring and promotion, women systematically take second place. To combat direct wage discrimination, trade unions use minimum wages in collective bargaining agreements, specific provisions on wage discrimination, company participation, as well as political campaigns and awareness-raising. Unions also help to upgrade jobs in which women predominate.
The accusation that higher unemployment is the result of higher wages is one that researchers are unable to substantiate. On the contrary, higher wages can actually make it worthwhile for employers to produce more and hire more workers.
A new look at unions
In addition to wages, other working conditions are also very important to employees. That's why trade unions were quick to call for an eight-hour working day, to lower the retirement age in Switzerland to 60 in the construction industry, for example, and to fight for more staff in the care sector. Working hours are generally shorter when unions have been able to negotiate them, at least in part. In Switzerland, CLAs are particularly important for the protection of health and safety in the workplace, as the legal requirements are low.
For unions, it's not a question of consciously influencing productivity, innovation or investment, and hence economic growth. But many of their activities, such as the minimum wage in a collective bargaining agreement, can still have a certain effect in these areas. While relatively early studies found that the presence of unions tended to go hand in hand with less innovation, the situation has now changed: instead, it seems that unions reinforce product innovation. When new products are created or existing ones developed, companies can increase their sales, which in turn benefits employees, since expanding companies have more room for wage increases and new jobs.
Outside the labor market, economists also recognize the importance of trade unions for society in general, and currently view them in a much more positive light. Indeed, they have won major fundamental social rights. What's more, their political fight for progressive taxation and political stability is paramount: they are successfully combating poverty.
It is to be hoped that the scientific world's new vision of the role of trade unions will also be reflected in Swiss politics.
- Joël Bühler and Daniel Lampart, On the importance of unions, a meta-analysis of the influence of unions and collective bargaining agreements on wages, working conditions and productivityfile No 153, Union Syndicale Suisse publication series, December 2022
