A new report from the Unia trade union has revealed that the gap between the lowest and highest earners in Switzerland has continued to widen. The highest-paid managers were found to earn over 100 times more than the lowest-wage workers at their companies.

Swiss CEOs paid 143 times more than lowest-paid workers

According to Unia, the gap in salary between the lowest and highest earners at the 36 largest Swiss companies has increased from 1:139 in 2022 to 1:143 by the end of last year. This means that the lowest salaried employee at these firms would have to work 143 years in order to earn a year’s worth of their CEO’s pay packet.

Last year, the largest wage differences were reported at UBS. The CEO of the Swiss bank, Sergio Ermotti, earned 14,4 million francs in nine months last year, the equivalent of 84.000 francs a day. Unia theorised that over the course of the year, Ermotti earned 19,2 million francs, meaning he was paid 1,5 times more in one day than the lowest-earning person at UBS earned in a year.

Major Swiss companies earn billions while laying off workers

Speaking to reporters, Unia economist Noémie Zurlinden said that it is “not just the top managers who are collecting huge amounts of money. Shareholders are also benefiting.” Last year, shareholders of the 36 largest Swiss firms earned dividends totalling 45 billion francs.

Unia continued by arguing that it was “shocking” that managers and shareholders were enriching themselves at the same time as announcing mass layoffs. In the next few years, thousands of workers at UBS - which acquired Credit Suisse in a government-backed bailout in 2023 - are expected to lose their jobs.

Swiss unions to hold demonstration in Bern on September 21

The union argued that the huge earnings by CEOs and shareholders prove that there is more than enough money to raise salaries across the board. “Given the wealth created in companies, it is unacceptable that employees' disposable income continues to decline. They are much more burdened by inflation,” noted Unia president Vania Alleva.

While real wages in Switzerland are expected to improve in 2025, it will not be enough to offset the losses seen since the COVID pandemic through rises in the cost of living, from health insurance to rents. Therefore, Swiss trade unions have demanded wage rises of at least 4 percent for 2025 and called for a large demonstration in Bern on September 21.

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