«SWITZERLAND AT WORK»
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1 «SWITZERLAND AT WORK» Reasons and factors of success of Switzerland s employment policy Valentin Vogt, President January 30, 2012, Brussels SWISS EMPLOYERS CONFEDERATION,
2 Valentin Vogt Career: : CEO, Burckhardt Compression Since 2011: Chairman of the Board of Directors, and co-owner Burckhardt Compression Several other Board Memberships Voluntary Services: President Swiss Employers Confederation Executive Committee Member economiesuisse Member of the Advisory Board Swiss National Bank 2 SWISS EMPLOYERS CONFEDERATION, Switzerland at Work, January 30, 2012, Brussels
3 Burckhardt Compression 1/2 3 SWISS EMPLOYERS CONFEDERATION, Switzerland at Work, January 30, 2012, Brussels
4 Burckhardt Compression 2/2 4 SWISS EMPLOYERS CONFEDERATION, Switzerland at Work, January 30, 2012, Brussels
5 Motivation contribute as an entrepreneur to further develop the boundary conditions for the economy in Switzerland to continue the success story of Switzerland to (re)establish the confidence of the Swiss people into the economy 5 SWISS EMPLOYERS CONFEDERATION, Switzerland at Work, January 30, 2012, Brussels
6 Business Organizations in Switzerland SME Association Swiss Employers Confederation economiesuisse Regional Sections Trade Associations Regional Organizations Trade Associations Regional Sections Trade Associations Companies 6 SWISS EMPLOYERS CONFEDERATION, Switzerland at Work, January 30, 2012, Brussels
7 Members Swiss Employers Confederation Members 36 Trade Associations 41 Regional Sections ca Companies Approx. 1.5 mn employees Thematic Dossiers Labor Market Social Security Education International labor market relations 7 SWISS EMPLOYERS CONFEDERATION, Switzerland at Work, January 30, 2012, Brussels
8 Switzerland the little big country 1/2 Population 7.9 mn (nr. 95 in CIA global ranking) GDP CHF 535 bn (nr. 19 in IMF global ranking) Industry 18,6% Financial Services 7,4% Pharmaceutical/chemical 4,2% Watches 2,0% 23% of population are foreigners more than 1.8 mn people one of the highest in Europe (after Luxembourg and Liechtenstein ) 1.1 mn people from EU/EFTA countries 0.6 mn people from other countries Labor force of 4.5 mn people participation rate of 57% one of the highest in Europe (after Luxembourg and Liechtenstein ) 8 SWISS EMPLOYERS CONFEDERATION, Switzerland at Work, January 30, 2012, Brussels
9 Switzerland the little big country 2/2 27% of the labor force are foreigners continuous increase over the last 20 years Unemployment rate of Total 3.0 % Swiss Nationals 2.3 % Foreigners 6.8 % Youth unemployment rate 3.4% 9 SWISS EMPLOYERS CONFEDERATION, Switzerland at Work, January 30, 2012, Brussels
10 Key Success Factors of the Swiss Economy Federalism Labor Market Macro Economics Culture Innovation Infrastructure 10 SWISS EMPLOYERS CONFEDERATION, Switzerland at Work, January 30, 2012, Brussels
11 ... Federalism Decentralized structures Make decisions at decentralized levels Spend time in preparation of decisions not in the implementing them Switzerland as a raw model for a future Europe Challenges Limits of federalism Speed and competence 11 SWISS EMPLOYERS CONFEDERATION, Switzerland at Work, January 30, 2012, Brussels
12 Macro Economics Stable currency Reasonable taxes Balanced government budgets Diversified and integrated economy e.g. SME / large corporations Well functioning bureaucracy Challenges Over valued Swiss Franc High cost island Switzerland 12 SWISS EMPLOYERS CONFEDERATION, Switzerland at Work, January 30, 2012, Brussels
13 Innovation Incubator Climate Innovation driven by private sector Education System Dual track education system Top technical universities Challenges Trend to academic education 13 SWISS EMPLOYERS CONFEDERATION, Switzerland at Work, January 30, 2012, Brussels
14 Infrastructure Well functioning mobility train system with dense timetable, superb road system, direct flights to all important economic centers in the world Balanced energy infrastructure 50% Hydro Power High IT diffusion Challenges Exit from nuclear power Space How many inhabitants can Switzerland bear with? 14 SWISS EMPLOYERS CONFEDERATION, Switzerland at Work, January 30, 2012, Brussels
15 Culture Swiss Mixture of no pain, no gain & business sense Small domestic market Focus to the outside Languages History Pessimism vs. Optimism Challenges Integration of foreign people Freedom vs. humility 15 SWISS EMPLOYERS CONFEDERATION, Switzerland at Work, January 30, 2012, Brussels
16 Labor Market 1/2 Flexicurity Liberal labor laws in combination with a well functioning social security network High loyalty of employees and employee satisfaction Social dialogue with unions and employees High participation in labor market over all and specially for elderly workers know how preservation Embedded culture of professional training on the job retain employability 16 SWISS EMPLOYERS CONFEDERATION, Switzerland at Work, January 30, 2012, Brussels
17 Labor Market 2/2 Direct democracy to vote on labor law means, to take responsibility for the functioning of the labor market Free movement of people within Europe Challenges: Safeguard social security Objectification Redeployment of not well educated people Drift in attitude Social cohesion 17 SWISS EMPLOYERS CONFEDERATION, Switzerland at Work, January 30, 2012, Brussels
18 Why does Burckhardt Compression retain a strong manufacturing base in Switzerland? Excellent infrastructure Well educated people (Academic & Dual education) Flexicurity Reasonable taxes High level of security 18 SWISS EMPLOYERS CONFEDERATION, Switzerland at Work, January 30, 2012, Brussels
19 Summary and Conclusions The secret is, that there are no secrets behind Switzerland s full employment over decades The success is based on several interlinked success factors and continuity Act before you have to «gouverner c est prévoir» We are more than willing to share our system and experience with anyone interested 19 SWISS EMPLOYERS CONFEDERATION, Switzerland at Work, January 30, 2012, Brussels
20 20 SWISS EMPLOYERS CONFEDERATION, Switzerland at Work, January 30, 2012, Brussels
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