Swiss voters on Sunday are unlikely to approve a proposal limiting the salaries of top executives – ending a campaign by the Young Social Democrats that has caught the fancy of the international press.
The goal of the proposal is to reduce the salary gap to a 1:12 ratio – in other words to limit the salaries of top executives based on the annual minimum wage of the lowest paid employee within the same company.
The plan has sparked debate in many parts of Europe including Swiss neighbours Germany and Italy – and in Britain, where the Financial Times warned that acceptance would «cost Switzerland dear».
In the United States, it has been fodder for many columnists, with more than a few expressing sympathy for the idea, including those in the New York Times and CNN.
But the latest opinion polls have shown the Swiss turning against the highly emotive plan.
«The tide has turned. It is no longer about fat-cat salaries,» said political scientist Claude Longchamp.
Longchamp said there were no indications of a political upset similar to the approval in March of a proposal to give shareholders a greater say on top manager salaries.
According to last week’s poll, the 1:12 initiative is expected to be clearly rejected in German-speaking regions – the majority of the country, with slightly higher approval rates in the French- and Italian-speaking parts.
Strong defence
Over the past few weeks, opponents, led by the business community, the government and most political parties, mounted a strong defence of the current wage system.
They have warned that approval of the initiative would undermine Switzerland’s competitive edge, result in a shortfall in state revenue and impose unnecessary restrictions on relations between employers and employees in a liberal market economy.
Longchamp said support was likely to come from younger voters. Turnout is predicted to be higher than usual, reaching around 50% – clearly above the long-term average.
The ballot brings to an end to more than six months of intense campaigning by the Young Social Democrats – backed by trade unions and centre-left parties – calling for just salaries and social fairness.
It is the latest in a series of calls to curb excessive pay packages and reduce the perceived gap between rich and poor. A separate initiative by the Trade Union Federation to introduce a minimum salary in Switzerland is likely to come to nationwide vote next year.
Family tax breaks
Also on Sunday’s ballot is a call by the rightwing Swiss People’s Party for families to be given tax breaks if they raise their children at home, relinquishing day-care facilities.
The People’s Party argues the traditional family role model should be put on par with families which send their children to nurseries and are therefore entitled to certain tax breaks.
However, most political parties, the government as well as the business community and women organisations have come out against the proposal. They claim it would discourage women to find work outside their households and prompt a serious shortfall in government revenue.
A legal amendment in 2011 scrapped the preferential tax status for families which do not need external childcare facilities.
The outcome of the vote is open, according to pollsters, but opponents are given a slight advantage following their massive last-minute effort to counter the People’s Party campaign.
Motorway fees
Turnout for Sunday’s vote could decide the fate of a third proposal – also by a rightwing group backed by road haulage and motorist organisations. The alliance challenged a parliamentary vote to raise the motorway fee from CHF40 ($44) to CHF100 per year to fund a series of road works.
It would be the first price hike for the mandatory sticker, known in Switzerland as a «vignette», in nearly 20 years. Tourists using the national motorway network would be able to purchase a temporary two-month permit for CHF40.
Vote observers expect a neck-and-neck race, as the frontlines cross the political spectrum and amid broad public interest in the outcome of this particular vote.