Swiss voters snub proposal to create world's highest minimum wage

Swiss voters have reportedly snubbed Swiss unions' proposal to create the world's highest minimum wage.

The voters rejected the proposal after siding with the government and business leaders in a referendum.

According to the Guardian, the plan, which would have pushed up the basic annual salary for a 35-hour week to 27,000 pounds, was rejected by 75 percent of voters as it would have required employers to pay workers a minimum of 22 Swiss francs (14.66 pounds) an hour.

In the wake of the high living costs in cities such as Geneva and Zurich, Swiss unions proposed a minimum wage rise while arguing that a minimum wage of 4,000 francs a month was a necessity because of expensive food, rent and health insurance.

The proposal made by the Swiss Federation of Trade Unions and supported by the Socialist and Green parties was opposed by government ministers, who countered the idea saying that it would put small companies out of business.

Most voters, however, agreed with the government and business leaders, who argued that the measure would drive Switzerland's high production costs even higher, the report said.