Stefan Brupbacher angry at short-time working regime: Swissmem’s boss sees Switzerland as a workplace in danger

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There is a lot of noise and smoke in the engine room of the Swiss technology industry: Orders from companies in the fields of mechanical and metal construction and electrical engineering fell by 10 percent in the third quarter of 2023 compared to the previous year. According to Stefan Brupbacher (56), the downward trend continues. “Exports to Germany, the USA and China continue to decrease,” says Swissmem’s association director.

Manufacturers of textile machinery or those in traditional mechanical and plant engineering have been particularly hard hit, says Brupbacher. “Some companies lost 30 to 40 percent of their orders. The technology sector is in recession.”

“A poisonous cocktail”

Swissmem’s director describes a “poisonous cocktail” as the reason for the stagnation in orders: High interest rates have triggered a recession in the global industry. In some EU countries, state energy subsidies flow to companies. “The situation will probably get worse with the dramatic appreciation of the Swiss franc. The next few months are a very important phase for the technology industry,” says Brupbacher.

The tech industry exports 80 percent of its products abroad and had to adapt to a strong Frank years ago. Brupbacher points out: “However, in the short term, it is not possible to react appropriately to such a strong and rapid appreciation as in the past few weeks.”

“This could force companies to lay off employees.”

In affected companies, production machinery is down and part of the workforce is idled, at least temporarily. Authorities have a short-time working tool in their toolbox for such situations. This insurance covers 80 percent of the wages of employees who are not needed for a maximum of twelve months. “This tool has proven itself in the past, so that in the event of a temporary drop in orders, no employees need to be laid off,” says the director of Swissmem.

The number of companies offering short-time work, starting from a low level, increases significantly during the summer months. However, most of their applications are in vain. “Unfortunately, some cantonal offices issue only short-term work permits in an extremely restrictive manner. “This could force companies to lay off employees,” says Brupbacher. He doesn’t want to give any names.

Swissmem calls politicians to duty

The Swissmem director admits that some companies need to improve the justification for short-time working requests. The association offers the necessary support for this. It calls on the federal government and the cantons to “consistently use this instrument financed by the social partners to prevent layoffs.”

Swissmem expects the Swiss National Bank to react appropriately to the situation of industrial companies in the event of a shock appreciation, as long as it does not endanger price stability.

Brupbacher sees politics as the primary driver: “They should improve the framework conditions wherever possible.”

For example, the association calls for the rapid conclusion of free trade agreements with India and Mercosur countries in South America, the stabilization of relations with Europe and the waiver of price-increasing regulations.

Source :Blick