The Week in Switzerland

Dear Swiss Abroad,

Welcome to our selection of news items from Switzerland that caught our eye over the past week.

On the political front, the headlines are dominated by difficult negotiations between Switzerland and the European Union. But we also explore the challenges facing three Swiss icons: skiing, watchmaking and a certain former tennis player.

Enjoy your reading!

The big stories of the week

Keystone / Gaetan Bally

Switzerland and the European Union

Switzerland and the European Union (EU) are struggling to reach an agreement on the free movement of people. This week, the European authorities announced that they have no intention of making an exception for Switzerland.

The two sides are currently negotiating updates and extensions to their bilateral agreements, but the issue of free movement remains a sticking point. Switzerland wants to be able to limit immigration from EU countries if the influx becomes too high. This is referred to as activating the “safeguard clause”.

However, Brussels dashed Swiss hopes this week. On the sidelines of a ministerial meeting, the EU confirmed that it would not derogate from the principle of free movement of people and would make no exceptions for Switzerland. Negotiations over Switzerland’s contribution to the EU Cohesion Fund are also proving difficult.

With positions seemingly irreconcilable, it’s doubtful an agreement will be reached by the end of the year, as initially planned. The Swiss government insists that securing a safeguard clause is crucial if there’s any hope of getting bilateral agreements approved by the public in a potential vote.

• The reasons behind Europe’s refusal are explained on the website of Swiss public television, RTSExternal link.

Keystone / Valentin Flauraud

The rising cost of skiing in Switzerland

Skiing is traditionally considered the quintessential Swiss sport, but with rising prices, we may wonder if it will remain a popular activity or become something reserved for the wealthy.

This week, Reto Gurtner’s comments made waves in the Swiss media. Gurtner, the head of the Weissen Arena Group, a major player in Graubünden’s winter tourism industry, predicted that “in ten years, a day’s ski pass will cost between CHF200 and CHF300 ($231 and $346).”

Gurtner’s forecast suggests a 100% – 200% increase on current prices, which would make skiing even less accessible to the average person.

It remains to be seen if prices will rise so sharply. However, many experts agree that the trend is upwards, driven by inflation, dynamic pricing models (based on demand) and the increasing reliance on artificial snow. “The trend is very likely to go in this direction,” says Jürg Stettler, director of the Institute of Tourism and Mobility at Lucerne University of Applied Sciences.

• Read tourism expert Jürg Stettler’s response to Reto Gurtner’s predictions in this article from BlickExternal link (in German)
• Topic on Reto Gurtner’s comments on the Swiss public television, SRFExternal link website (in German)

Keystone / Michael Buholzer

Roger Federer faces hurdles off the court

Though he’s been out of the game for a while now, Roger Federer continues to make headlines in the Swiss media, but this time it has nothing to do with tennis.

Federer is facing difficulties with his building projects at his property in Rapperswil-Jona (canton St Gallen), on the shores of Lake Zurich. The dispute concerns the construction of a new boathouse with a pontoon and access channel, as well as the demolition of the existing pier.

What makes this case unusual is that the objection comes from the government, specifically the Federal Office for the Environment (FOEN). The FOEN has appealed against the decision of the local and cantonal authorities, who had approved the project. Such appeals from the FOEN are rare, with only “a handful each year”.

• The FOEN’s appeal is explained in this article from Le TempsExternal link (in French)

Keystone / Melanie Duchene

Swiss watch exports plunge to record lows

The oil that keeps the Swiss watchmaking industry running is beginning to dry up, with exports of Swiss watches hitting a new low in September 2024. The downward trend is continuing, and even intensifying.

Compared to September 2023, exports fell by 12.4% last month, primarily due to struggles in the Asian market. China and Hong Kong accounted for two-thirds of the decline.

Elsewhere, the situation is less dire. Exports to Europe dropped by only 3.4% in September, while the US market saw modest growth of 2.4%, although at a slightly slower pace than in the previous month.

Nonetheless, the Swiss watchmaking industry’s heavy reliance on Asia in recent years means that this slowdown could spell trouble. Some specialists warn of a looming crisis, evidenced by an increasing number of watch industry subcontractors resorting to short-time working.

• The Tages-AnzeigerExternal link article (in German) delves into the September figures for the watch industry
• Swiss public television, RTSExternal link article on the mounting pressure on watch industry subcontractors

Keystone / Jean-Christophe Bott

Controversy over counting toilet breaks as working time

As if plunging exports weren’t enough, the Swiss watch industry has found itself in the spotlight this week for negative reasons. Swiss public broadcaster, RTS, reported that the Neuchâtel cantonal court had ruled in favour of a watchmaking company that counts toilet breaks as part of employees’ working time.

Initially, the Neuchâtel Office of Labour Relations and Working Conditions (ORCT) had banned the practice, arguing that it violated the Federal Labour Act. “Work interruptions for physiological needs cannot be considered as breaks,” the office stated.

However, the company appealed to the cantonal court, which ruled in its favour. This is the first time such a question has been decided by a Swiss court. The cantonal court did note that this practice disproportionately affects women, who may need to use the toilet more frequently due to their menstrual cycles, and asked the company to address this inequality.

Though the courts have spoken, the practice has sparked significant backlash, with some calling it “dehumanising and humiliating”. Unions protested outside one of the four Neuchâtel companies that implement the practice, and the Neuchâtel authorities have made it clear they do not want it to become widespread. The Swatch Group, which owns two of the companies involved, has also requested they cease the practice.

• The Swiss public television RTSExternal link investigation

Swiss oddities

Swiss currency has its star: the CHF1000 note ($1,154), the most valuable banknote in the world. But among Swiss coins, there’s a “poor relation”, an “ugly duckling”: the 5-centime/Rappen coin. It’s practically worthless, clogging up wallets and even rejected by vending machines.

Yet, despite its lack of value, these unloved coins are in high demand. The number of these coins in circulation has risen more over the past decade than any other denomination. This week’s article on unusual Swiss quirks explains why.

Photo of the week

Keystone / Gian Ehrenzeller

This week, Switzerland’s agricultural life comes alive with the traditional OLMA fair. The 81st Swiss Agriculture and Food Fair is taking place in St Gallen from October 10 to 20. It’s the largest event of its kind in Switzerland, usually attracting over 300,000 visitors.

The week ahead

Next week, part of Switzerland will still be on autumn holidays, which likely explains the relatively quiet agenda.

On the international front, Swiss Foreign Minister Ignazio Cassis will chair a Security Council meeting in New York on Monday, focusing on the impact of scientific progress on international peace and security.

In Switzerland, economic heavyweights Lonza, Logitech, Roche and Ems-Chemie will be presenting their results, offering a glimpse into the state of the national economy.

Finally, on a lighter note, gourmets will be watching for the unveiling of the Swiss selection for the Michelin Guide in Lausanne on Monday.

Translated from French by DeepL/amva