Swiss business leaders and trade unions are joining forces ahead of a crucial vote on Sunday to oppose a hard-right proposal aimed at capping immigration. The initiative, which has sparked fears of severe impacts on employment and trade relations with the European Union, is being strongly contested.
Background of the Initiative
The proposal, put forward by the Swiss People's Party (SVP), seeks to limit the country's population—currently 9.1 million—to below 10 million until 2050. The SVP, Switzerland's largest political party, argues that the initiative, titled 'No to a Switzerland with 10 million!', is necessary to combat 'out of control' immigration, which it blames for issues such as overcrowded trains, rising rents, and urban sprawl.
Despite broad opposition from the government, parliament, and the business sector, opinion polls suggest the vote could be closely contested.
Opposition from Business and Unions
Major employers' organisations and unions have labelled the initiative the 'chaos initiative', warning it could undermine Switzerland's prosperity. The country's economy relies heavily on foreign labour, primarily from the EU, in sectors such as medical research, construction, and healthcare.
In the hotel industry, more than 50% of employees are foreigners, according to Martin von Moos, head of the industry association HotellerieSuisse. He expressed concern that the initiative would exacerbate chronic labour shortages.
Impact on EU Market Access
There are also fears that the initiative could jeopardise key agreements linking Switzerland to the EU, its main trading partner, including the 1999 agreement on the free movement of persons. Last year, more than half of Switzerland's total exports went to the EU, amounting to over 147 billion Swiss francs ($185 billion).
'For us, access to the European market is vital,' said Pierre-Yves Bonvin, head of textile machinery manufacturer Steiger, which exports all its production to the EU. The company has relocated part of its production to China but retains high-value-added machinery in Switzerland. More than a third of Steiger's 40 employees in Switzerland are foreign nationals.
'In Switzerland, we can find engineers to design, work and assemble the machines, but we lack the expertise to test and calibrate them,' Bonvin explained. 'There is no longer any training in this field in Switzerland, and we have to recruit these specialists from France and Germany.' He stressed that without these skills, the company could not continue producing these machines in Switzerland.
SVP's Response
The SVP has dismissed these concerns, noting that the proposal includes quotas allowing for around 40,000 immigrants per year. However, critics argue that these quotas would be insufficient and could be skewed.
Simon Michel, head of medical technology company Ypsomed, which manufactures injection systems for diabetes, warned that 'priority will be given to hospitals and for elderly care, (and) industry will come last.' Michel, also a lawmaker with the right-wing Liberals, noted that his company is seeking to recruit around 100 precision mechanics over the next three years for its factory in Solothurn, near Bern. He said competition for such skilled workers is fierce, and even with a substantial apprenticeship programme, the company cannot train everyone it needs and must turn to France, Germany, or Poland.
Union Concerns
Trade unions have also voiced concerns that pressure on exporters could lead to relocations and job losses in Switzerland. Switzerland's largest union, Unia, warned that the initiative would weaken labour protections, abolish rules barring discrimination between resident and foreign employees, and 'open the door wide to wage dumping'. Unia cautioned that the SVP's 'xenophobic campaign' would 'put pressure on salaries for all workers in the country'.
