Victorinox employees have no cross to bear

Victorinox employees ares still worjing despite the fall in sales. victorinox.ch

The cross on Victorinox’s Swiss army knives is not only a company trademark but also a symbol of the Christian corporate culture that characterises the firm.

While many companies are quick to lay off employees when times are tough, sackings are taboo at the 120-year-old Victorinox.

The family-run firm say this policy is down to its Christian traditions.

“Our firm feels obliged to adhere to Christian principles in the day-to-day running of our business,” Carl Elsener IV, who runs the company together with his 81-year-old father, told swissinfo.

Some 950 employees work at Victorinox’s factory in Ibach in canton Schwyz – the area’s largest employer – producing about 100,000 knives each day.

But sales have slumped since the September 11 attacks in the United States when hijackers used knives to overpower the aircraft crews.

Knife ban

Since then airlines have prohibited passengers from bringing pocket knives into the cabins of aircraft, hammering duty free sales of Victorinox knives.

Given the importance of the line – with pocket knives making up about 70 per cent of company revenues – the ban has been a serious blow for the company.

“After seven good years follow seven bad years. Things have moved in such cycles for thousands of years,” says Elsener IV, making a reference to the bible.

But despite difficult times, the company is less likely than others to make employees redundant when demand drops.

“According to my father our company has never let go of any employees during economic difficulties,” Elsener IV said.

Employee morale

His father, Carl Elsener III, continues to talk to employees to keep their morale high.

“The employees trust the Elseners,” says Rolf Schäuble, president of the company’s employment council.

“During times of rising unemployment, employees are grateful to be on Victorinox’s payroll,” he adds.

Last spring the firm stopped production for three weeks to reduce inventories, but employees continued to be paid.

“We had to reduce our holidays a bit, but we didn’t lose any wages,” Schäuble says.

The company says it did not take up the option to go to the cantonal authorities to request shorter working hours, because it did not want to strain the public purse.

Trust is perhaps why employees at Victorinox are not unionised.

Back in 1942 the Elsener family set up an employment council, giving them a forum to voice their concerns, before this was required by law.

swissinfo, Delf Bucher (translation: Karin Kamp)

Key facts

Victorinox is run by Carl Elsener III (grandson of the founder) and his son, Carl Elsener IV.
Sales of Victorinox pocketknives slumped by a third in the last quarter of 2001 and remained flat in 2002.
Elsener IV does not expect the company’s performance to improve significantly in 2003.