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16 May 2014

Seattle, Stuttgart, Switzerland – welcome to the new era of minimum wage radicalism

Across radically different economies, there are powerful, populist pushes for a higher wage floor.

By Gavin Kelly

Lift your gaze from the humdrum debate on living standards in the UK and look overseas: something seems to be stirring on the politics of low pay.

On Sunday, the Swiss vote on whether to introduce a wage floor of an almighty 22 francs (£14.90) per hour – by some way the highest in the world. Two weeks ago, the mayor of Seattle used May Day to unveil his plan for a city-wide minimum wage of $15 (nearly £9), more than double the Federal Minimum Wage, and in doing demonstrated the potency of US city-leaders in an era of a grid-locked President. Next month, the Bundestag will vote on the bill to introduce Germany’s first ever national minimum wage, of €8.50 (around £7 or $11.70), benefiting 4 million workers, after Angela Merkel’s coalition partners, the SPD, made the policy a pre-condition for the formation of a government.

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