Valais: New minimum Wage For Liftco' Employees

The Council of State has approved the new standard employment contract (NAV) for the Valais mountain railways, which will come into force on September 15, 2022. This new NAV, which was negotiated between the Umbrella Association of Walliser Mountain Railways (WBB) and the unions that represent the employees, now provides for a monthly minimum wage of CHF 4,005 over thirteen months. The rest of the pay table, which includes all other higher-paying roles and the experience share system, has also been revised. In view of the wage dumping detected in May this year following a general inspection of wages paid in the sector, the Council of State intends to declare the NAV wage table universal in stages:

- from January 1, 2023, the basic salary of CHF 4,005.- (22.75 per hour) x 13;

- from June 1, 2023, the entire salary table including experience. 

Corresponding talks are underway with the cantonal tripartite commission, in which the canton, employers and trade unions are represented.

After the draft of the new NAV was published in the Official Journal on June 24, 2022, the industry association and some mountain railway companies submitted statements. Changes were then made by the Canton of Valais in order to find a compromise with the Association of Valais Mountain Railways. One year of experience now corresponds to a full year of work or two seasons (winter or summer) with at least three months of work each. The final NAV decree will be published in the Official Gazette on September 9th and will come into effect on September 15th, 2022.

Article 17 of the Act to Promote Mountain Railways (GFBB) stipulates that NAV wages must be complied with in order to receive state aid.

The canton intends to declare the wages of the NAV generally binding by May 31, 2027:

• from January 1, 2023, the basic salary of CHF 4,005 (22.75 per hour) x 13;

• from June 1, 2023, the entire salary table including experience.

As a reminder, the report commissioned by the cantonal tripartite commission stated in May this year that in the period 2018-2021, 36% of the wages paid in the sector were below the wages provided for in the current NAV. Of 53 companies controlled, 39 had paid some of their employees below the minimum amounts provided for in the NAV.