Discontent within business federation widens

There are tough times ahead for economiesuisse Keystone

The Swiss Business Federation (economiesuisse) faces a split after two major industry associations said they would likely pull out.

The reasons seem to be widely differing interests within the Swiss business community, Martin Spieler, editor of the weekly Handelszeitung business newspaper, tells swissinfo.

The Swiss Master Builders’ Association on Tuesday followed Swissmem – the umbrella organisation of the engineering industry – in announcing it was considering leaving the federation at the end of the year.

economiesuisse spokesman Urs Rellstab said the federation would be holding talks with both Swissmem and the builders’ association in the coming months, adding that chances for successful talks were “intact”.

He did not want to comment on what measures would be taken if the two organisations carried out their plans to quit, saying this was pure speculation.

swissinfo: Is there something wrong within the Swiss Business Federation (economiesuisse)?

Martin Spieler: There is a divide between the different interests of the mechanical and electrical engineering industries on the one hand, and the finance sector and the pharmaceuticals branch on the other.

economiesuisse is finding it increasingly difficulty to cater to all these interests. A major bone of contention is also [the size of] membership contributions, with members of Swissmem wanting to pay less.

swissinfo: Is this divide also a conflict between strong and weak members?

M.S.: It’s not just that because there are big companies in the metal industry. But the banks and the pharma companies like Roche and Novartis have other interests than the small and medium-sized companies.

The big firms in the metal and machine industries are extremely dependent on exports and therefore have other interests than the Swiss financial centre, which for example is more concerned with protecting banking secrecy.

swissinfo: How long has this rift existed?

M.S.: The divide has been growing and will continue to do so. But despite these differences economiesuisse still remains an important lobby group.

Swissmem holds an important negotiating card [by announcing a] formal withdrawal but I’m not sure that this will actually come about.

swissinfo: Could there be a split within the Swiss business world?

M.S.: That’s a distinct possibility but it would be a bad turn of events. I tend to believe that after this people will sit around a table and try to bring all the interests together. Business leaders are well aware that there is much at stake.

By announcing it will leave [economiesuisse] I think Swissmem has given a clear signal. This can help it push through its demands.

swissinfo: How could this conflict affect Switzerland as an economic centre, if at all?

M.S.: If there were a split, it would be bad because the business community would be less unified in promoting its interests in the law-making process.

It is important that it can put forward a unified position. If this were not the case the left-wing parties could press home their demands more forcefully.

swissinfo-interview: Renat Künzi

Key facts

The Swiss Business Federation was created through the merger in 2000 of the Swiss Trade and Industry Association and the economic promotion organisation.
At that time the Swiss Employers’ Association decided to go it alone.
Since its founding, the federation has attracted more than 30 new members, including Microsoft, IBM and the SWX Swiss Exchange.

In brief

There would be serious financial consequences if Swissmem and the Swiss MasterBuilders’ Association left economiesuisse.

They pay more than SFr4 million ($3.3 million) into the economiesuisse budget of SFr15 million.

Swissmem pays an annual SFr3.75 million to economiesuisse and it said on Monday that it was no longer prepared to pay such an amount.

The builders’ association has not disclosed its contribution.