“They convert the salaries into euros calculating them with a fantasy exchange rate,” Hans Hartmann at Unia, the largest Swiss trade union told The Local on Monday.
The move will affect around half of Farnair’s 144 employees with those living in Switzerland retaining the same salaries. Unions have reacted angrily to the move and Hartmann called the practice of differential pay rates illegal, arguing that it violated bilateral agreements with the EU.
He added that while there have been a few cases of companies paying their cross-border workers in euros in response to the recent appreciation of the franc, he denied press reports that it is a “growing problem”.
Farnair announced the measures in an October 4th email sent by chief executive, Guy Girard.
The airline, based in Allschwill in northern Switzerland, justified targeting workers living in France and Germany by arguing that cross-border commuters possess greater purchasing power than their co-workers living in Switzerland.
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