2013 Salaries
Salary increase granted by ETH Board (Dec. 7, 2012)
On 14 November, the social partners met the President of the ETH Board, Fritz Schiesser, and representatives of the Directions of Schools and Institutes to exchange views on the wages increases in 2013 (one cannot talk about real negotiations since President Schiesser had not obtained the mandate for that from the ETH Board). The EPFL section of Association of Executives of the Confederation (ACC) was represented by its Vice-President, Prof. Stephan Morgenthaler. The personel associations required an increase of 1%. The ETH Board decided to grant 0.6%. By comparison, the Federal Council decided to grant 0.5% to its federal personnel. This is the first time in several years that ETH employees receive (a little) more and not less than their colleagues in the federal administration.
The federal statistical office predicts for all of 2012 a decrease of the average price level by 0.7%. It is common to compare the wage increase granted for the following year with the inflation of the current year to determine the variation of “real” wages, i.e., the change in purchasing power. Under this practice, the nominal increase of 0.6% must be added to the price decline of 0.7%, leading to an increase in our purchasing power of 1.3%. In fact, our purchasing power in 2013 will depend on the evolution of prices next year. For now, we can only calculate that our purchasing power this year was 1.1% higher compared to 2011: 0.4% salary increase decided in December 2011 plus 0.7% price decline this year.
For the record, wage increases decided by the ETH Board concern only staff in the “new” salary system and professors. Employees who benefit of a fixed rate (PhD students, post-docs) are not directly concerned. The increase in their salaries is decided by the EPFL Direction after negotiation with the ACC-EPFL.
2012 Salaries
Results of the salary negotiations for the federal administration (12.11.2011/24.11.2011)
In 2012, the staff of the federal administration will receive a cost-of-living adjustment of 0.4%, which fully offsets the inflation calculated based on the average inflation rate of the year, and a real wage increase of 0.8%. These percentages were agreed during the negotiations that took place on November 11 between the personnel associations of the Confederation and Federal Councillor Eveline Widmer-Schlumpf. They are considered inferior to the results of wage negotiations in the private sector.
Other claims of the personnel associations could not be considered, such as a lump-sum allowance for pensioners in compensation for accumulated inflation.
This outcome of the negotiations was approved by the Federal Council on November 23. The agreement of the Federal Budget 2012 is reserved.
For the record, the personnel associations of the ETH Domain required to obtain at least as much as the federal employees this year, after a result significantly lower last year. A second year of smaller salary increase would degrade the employer status of the ETH Domain.
Salary negotiations for the ETH domain (11.11.2011)
The negociations took place on November 2. The partipants were the presidents of the ETH domain and of EPFL, the director of PSI, the head of HR and the general council of the ETH board and representatives of the personnel associations Transfair (Mrs Wicki), SSP (Mr Serra), APC (MM. Meier et Python) and ACC (MM. Weidmann, Fritschi et Thalmann). UP EPF was neither invited nor represented.
Before discussing salaries, there was a discussion about the increased use of temporary contracts in the ETH domain. This is related to the growing share of third-party financing, but the school presidents promised to make sure there was no abusive use of such recruiting and that the persons concerned were fully aware of their status.
Regarding the proper negociations, the truth is that Pres. Schiesser has little financial room: the Parliament keeps asking for more services of the ETH domain while increasing its budget only marginally, by 1.5% next year. He does not even have the power to decide about the pay rise for next year, this belongs to the ETH board,which will meet on December 1. Under these conditions, the ‘negociations’ are really little more than a gentlemen’s discussion and the personnel should not expect much more than the compensation of the (moderate) 2011 inflation.Note that for the first time, inflation will be calculated as the average of the 12 monthly rates, yielding the same figure as the one published in the press.
At the end of the meeting, the common declaration of intent of the ETH domain and the personnel associations was signed by the parties present, together with the social plan for the ETH domain.
Demands of ACC for the salary negotiations in the ETH domain (13.07.2011)
ACC demands full compensation for the 2011 inflation (currently estimated at 0.7%) + 2.2% as a compensation for the incidence on available incomes of the growth of health insurance premia (which are not included in the consumer price index) in 2010 and 2011. In exchange, we renounce asking the 2.5% or even 5% that were granted to the higher ranks of the central administration two years ago. We also demand something for the pensioneers, whose retirement compensations remained constant since 2004 in spite of accumulated inflation of 6%, and more efforts in providing day-care places.
2011 Salaries
Small increase of the lump-sum for new docs and post-docs (11.01.2011)
Following yesterday’s negotiations with the social partners APC and ACC, the School Direction decided to raise the lump-sum for Phd students by 400 CHF (e.g. from 50,500 CHF to 50,900 CHF in 1st year) and by 600 CHF for post-docs (from 80,500 to 81,100 CHF in 1st year). This corresponds roughly to the 0.7% raise granted by the ETH Board to the other personel. Note that this increments only concern docs and post-docs hired in 2011. Those who were hired early stick to the lump-sums that applied when they were hired. Thus, a PhD student hired on 1.1.2009 earns in 2011, for her 3rd year, 54,000 CHF, and a PhD student hired on 1.1.2010 earns in 2011, for her 2nd year, 52,500 CHF. For these PhD students, the ordinary annual increment of 2,000 CHF is now meant to include compensation for inflation. Considering that NSF increased its lump-sums for PhD students for the second time by 600 CHF, this reduces by as much the salary complement paid by the Faculties.
ACC-EPFL is not happy with the outcome of these negotiations. We still believe that the ordinary increment is a reward for experience and that inflation ought to be compensated separately. We also regret the multiplication of “cohorts” of PhD students and post-docs to whom different lump-sums apply, as this destroys that equality of treatment that presided to the introduction of the lump-sums. We have to admit, though, that our negotiation power is weakened by the PhD student’s and post-docs passivity or expressed satisfaction with the current system.
0.7% salary increase for the employees of the ETH domain in 2011 (13.12.2010, rev. 07.01.2011)
The ETH Board decided to raise the salaries of the employees under the new salary system and the professors by 0.7% from January 1, 2011. The Board presents this as the sum of 0.6% compensation for 2010 inflation and 0.1% ‘real increase’. The actual 2010 inflation, just disclosed, was indeed 0.7%, so there is really no real increase whatsoever. In fact our purchasing power is decreasing by over 0.5% and even 1.5% for the higher salaries because the increases on health insurance premia (8.1% in 2010 compared to 2009) and social security contributions are not taken into account.
1% salary increase in the central administration in 2011 (20.11.2010)
Our employee associations obtained, for the employees of the central administration, a 1% increase in salaries for next year: 0.7% in compensation for 2010 inflation and 0.3% real increase. The employer was sensitive to the much more generous pay rises granted in other sectors of the economy. Let us hope that the ETH board will share this analysis.
Wage negotiations for the ETH domain (27.10.2010)
On October 27, the president of the ETH domain, of ETHZ and VP Perret met the representatives of the employees. Those of the EPFL were represented by the president of ACC-EPFL. The negotiations were tough. The ETH presidents would like to keep a maximum of the expected 1% growth of the budget for the ETH domain in 2011 to develop the infrastructure and hire more people, in response to growing student numbers. The ETH board gave its president the mandate to accept only inflation compensation, and even that with a ceiling at incomes of 100’000 CHF. Presently inflation is expected at 0.6% but that can still change until December 8, when the ETH-board convenes to decide on the salary increases. After tough negotiations, the partners agreed on a solution, which cannot be disclosed before the ETH board approved it. What is no secret is that nothing more will be granted in 2011, in particular no compensation whatsover to the retired staff, who is still waiting for some compensation for the accumulated inflation snce 2004.
2010 salaries
Salary increases for 2010 in the ETH domain (11.12.2009, rev. 08.01.2010)
The ETH board approved on Debember 11 the pay increase the social partners had agreed upon during their negotiations on October 30: +0.6%. This is a mere compensation of the expected inflation for 2009. NB: it applies only for employees under the new salary system and professors. PhD students did not receive anything in 2009. For 2010, there should be negotiations at the EPFL level.
Please remember that inflation is computed, for this purpose, by comparing the December values of the consumer price index (CPI). The result is generally different from the average yearly inflation you find in the press. The value of the CPI was 103.4 in December 2008 and 103.9 in November 2009, so +0.5%. An increase of 0.6% was thus quite plausible at the time of negotiations. In fact, the index declined slightly in December, to 103.6, so total inflation as defined for our compensations was only 0.2%.
Average yearly inflation for 2009, defined as the average of the monthly indices for 2009 divided by the corresponding average in 2008, was -0.5%. Remember, however, that it was 2.5% in 2008 when federal employees were granted 1.1% as compensation for inflation. The increase from December 2007 to December 2008 had turned out to be 0.8%.
It is also important to remember that the CPI is not a cost-of-living index: all mandatory expenditures are missing, such as taxes, social security contributions and health insurance premia.
Wage negotiations for the ETH domain (30.10.2009)
On October 29, the presidents of the ETH domain and the ETH schools met the representatives of the employees. Those of the EPFL were represented by the president of ACC-EPFL. The negotiations were tough. The ETH presidents would like to keep a maximum of the expected 3.4% growth of the budget for the ETH domain to develop the infrastructure and hire more people, in response to growing student numbers. The ETH board gave its president the mandate to negotiate only on a single figure: the global increase in the salaries for the personnel on January 1, which includes the compensation for inflation (predicted at 0.6%) but also the increases for experience and performance. After tough negotiations, the partners agreed on that single number, which cannot be disclosed before the ETH board approved it. What is no secret is that nothing more will be granted in 2010, in particular no compensation whatsover to the retired staff, who is still waiting for some compensation for the accumulated inflation of the last 5 or 6 years.
Wage negotiations for the central federal administration (12.06.2009)
On June 12, the representatives of the personel associations met for the first time with Financer Minister Merz to negotiate next year’s salaries. The minister agreed that the employees of the central administration will receive full compensation for the 2010 december-december inflation (if there is any inflation! NB: in case of negative inflation, salaries cannot be adjusted downward). Beyond that, nothing is to be expected. Pensioneers would get no inflation compensation again. The legal basis will be created to allow the employer to pay more than half of Publica contributions (which has already been implemented last year in the ETH domain but to a much lesser extent).
2009 salaries
There is a widening gap between the employment conditions (salaries and pension contributions and benefits) of the higher ranks of the federal administration and the compensation packages in the private sector. The Federal Council is aware of this since the large study in 2005 by Price Waterhouse Coopers, but decided only on April 9, 2008, to raise real salaries on January 1, 2009, proportionnally by more for the higher ranks (salary classes 24 and more). On December 5, after meeting the social partners including ACC, it decided to grant 1.1% pay increase as compensation for 2008 inflation, plus 1.1% real growth in classes 1 to 23, 2.5% in classes 24 to 29 (eq. function levels 10+11+12) and 5% in classes 30 to 38 (eq. function levels 13+14+professors). All of this should make the total payroll in the central administration grow by 2.7%
The PWC study compared remunerations of the Confederation with those of the cantons and the private sector for a selection of functions, rather for the central administration that the ETH domain. One can nevertheless note that for the two functions most similar to those typical of the ETH domain, the differences are particularly large. Thus, natural scientists who practise research in a private companies earn 31% (!) more than in the federal administration and those who improve the knowledge base and develop models earn 13% in the private sector.
ACC took several steps to obtain the same improvements as in the administration for all employees and especially the higher ranks of the ETH domain. This is not just a matter of equity but also an attempt to stop the continuous erosion of employment conditions. It demands full inflation compensation for all.
Initially the ETH board, for budgetary reasons, wanted to grant no real salary improvements in 2009 and only 1% or 1.5% compensation for inflation. In November, the perspectives that ACC’s demands would be heeded improved substantially as the Federal government asked the Parliament to lift the credit blocking initially planned. Parliament did so on December 15 and 16. As a result, the ETH board announced that it would grant the same 1.1% for inflation compensation and 1.1% general real increase as in the central administration but nothing more for the ranks.
1.1% for 2008 inflation compensation turned out, to the surprise of all, to be a high estimate as the December-December inflation rate, which matters here, was only 0.8%. Indeed, the price index decreased in the last two months of 2008.
Note that the EPFL direction decided not to grant any increase to PhD students benefiting from the lump-sum rate (50K, 52K, etc.).
More problematic is the absence of a catch-up for the higher ranks of the ETH domain. It is to fear that strong opposition by EPFL’s president is responsible for this decision. He argues that the higher ranks of EPFL, particularly its professors, care much less for their paycheck than for the continued rapid growth of the School. Let us hope that he is right and that the continued erosion of their relative compensation package does not encourage ranks and professors of EPFL to look for a better deal somewhere else nor to reduce their efforts for the School. (8.1.2009).
More (in French): http://www.efd.admin.ch/dokumentation/medieninformationen/00467/index.html?lang=fr&msg-id=23652
To see what employees get in other sectors, check this (in French): http://www.sgb.ch/fr/f-download/60_DL_EA_Negociations-salariales_bilan-intermediaire.pdf
Due to the deteriorating general economic situationt, the Parliament lifted the 1% budget blockade initially planned. On that basis the ETH board decided to grant all its employees a 1.1% proportional salary increase as compensation for 2008 inflation plus 1.1% as real salary improvement. It did not heed ACC’s demands for the same real increase for the higher ranks as are granted in the general administration to narrow the gap with compensation packages in the private sector. Nor did the ETH board heed ACC’s suggestion of a one-time Christmas payment to the retirees of the ETH domain, whose pensions are unchanged for years.
Good news: the 2008 inflation turned out to be only 0.8%, which implies that salaries increased 1.4% in real terms relative to July 1, 2008, when they were already raised 1% relative to january 1, 2008. But remember that the PUBLICA contributions also increased strongly for many of us. (8.1.2009)
The full story is here.
Salary improvements (Jan. 2008)
Negociations of the personnel associations, among which ACC, with finance minister Merz on November 27 led to the following proposals, which were later adopted by the federal government and Parliament:
- 3.1% increase of salaries on July 1, 2008, as a form of catching up with inflation between 2004 and 2007
- 1% real salary increase on July 1, 2008, with an additional 1% of the salary mass for the higher ranks in 2009
- one-time allocation of 0.95% of salaries, in March or April, as compensation for the expected inflation of 2008
Following new negotiations on January 22, the compensation for inflation will be 3.7% instead of 3.1% because inflation in 2007 turned out higher than expected. More at: communiqué du DFF (only in French).
We now hope that the ETH board will apply the same salary improvements to the members of the ETH domain.
New salary system in the federal administration
In a meeting with the social partners, amongst which the AAC, Finance Minister Merz announced that the introduction of the NSS is to be postponed at least until 2010, if not completely withdrawn for the federal staff. As it happens, the EPF domain is the only one to have introduced the NSS. The CFF have abandoned the project half-way through. They therefore remain with the same 35 classes as the rest of the federal administration.