How do Swiss entrepreneurs defend themselves from Super Frank against the euro? Increasing the working hours per week of their employees. This is one of the most unique but effective counter-moves adopted by some Swiss companies to face the competitiveness lost due to the strengthening of the Swiss franc on the euro.
For example, in the canton of St. Gallen, the agribusiness Buehler raised the length of the working week to 45 hours. If the exchange rate between the Swiss franc and the euro were to return above 1,08, the working weeks would be reduced to 42,5. Buehler is not the only Swiss company to have offered its employees to increase working hours.
There are some cases in which working hours have not only been increased but the remuneration of executives and middle managers has also been reduced by 5-10%. These choices mainly concern those companies that make export one of their main businesses. For these companies, which export in euros, the strong franc and the weak single European currency represent a major problem in terms of profits. Are there any alternatives to this solution? Surely there are two: relocating production abroad or hoping for an intervention by the Swiss central bank to make the Swiss franc a little weaker. In the meantime, the companies launch their own defensive moves.
