FerrumFortis

Steeltec's Swiss Workforce Rallies Against Job Cuts, Demands Short-Time Work Instead

Synopsis: Around 350 people gathered in Emmenbrücke to protest 130 planned job cuts at Steeltec, calling for short-time working instead to preserve expertise and capacity.
Monday, December 9, 2024
Swiss Steel
Source : ContentFactory

On December 7, 2024, several hundred employees of Swiss Steel subsidiary Steeltec and their supporters rallied in Emmenbrücke LU, protesting the planned redundancies at the steelworks. Around 350 individuals, including Steeltec workers, trade union representatives, and members of the Swiss Climate Strike, gathered at Emmenbrücke railroad station and marched to the steel plant, voicing their opposition to the job cuts. The rally was a passionate response to the announcement that 130 positions would be eliminated at the plant, a move that many see as detrimental to both the local economy and the steel industry as a whole.

The protestors are calling for an alternative to the layoffs: short-time working. Instead of cutting jobs, they advocate for measures that would allow workers to retain their positions, while the company reduces working hours to match the cyclical nature of the steel industry. This approach, they argue, would preserve expertise and maintain production capacity during difficult economic periods, ensuring the company is ready to ramp up production when conditions improve. The protest emphasized the importance of protecting skilled jobs and maintaining Switzerland's domestic steel production, which is seen as a critical part of the country’s industrial and economic infrastructure.

The rally saw solidarity from diverse groups. Members of the Swiss Climate Strike, which has long advocated for sustainable and local production practices, voiced their support for Steeltec’s workers. They argued that regional steel production should be prioritized over cheaper, overseas manufacturing, especially considering the environmental and logistical costs of importing steel from abroad. Recycling scrap steel locally was also highlighted as a key practice that should be supported, emphasizing the environmental benefits of maintaining local steel production and reducing transportation-related emissions.

Criticism of Swiss Steel’s management was a central theme during the rally. Lucerne SP National Councillor David Roth, who attended the protest, raised concerns about the impact that the job cuts would have on local communities. Roth pointed out that Swiss Steel's decision to cut jobs at the Emmenbrücke site could lead to increased environmental harm, with an estimated 47,000 truck journeys each year needed to transport scrap metal across the border. Such a practice, Roth argued, was both inefficient and harmful to the environment, especially given the potential for local steel production to minimize these trips.

Roth also criticized Swiss Steel’s management for its role in the planned redundancies. He claimed it was unfair for employees to bear the brunt of the company’s international mismanagement. "It is unacceptable that a successful location has to pay for the international mistakes of the management," Roth said. He emphasized that Swiss Steel, as a Swiss company, had a responsibility to its workers and the country to ensure that local production capacity was preserved, even during economic downturns.

A Steeltec employee who spoke at the rally reminded attendees of the cyclical nature of the steel industry, where demand for steel can fluctuate based on global economic conditions. The employee argued that layoffs should not be the first response to these fluctuations. “It’s better to ride out the tough times than to lay people off hastily,” the worker said. This sentiment was echoed by several others who voiced concerns that the decision to cut jobs in a time of economic difficulty would ultimately undermine the long-term stability of both the steel plant and the local economy.

The planned job cuts at Steeltec were part of a broader announcement from Swiss Steel, which revealed plans to eliminate 800 positions across the company’s operations. At the Emmenbrücke site alone, 130 jobs were slated for reduction, with 80 of these expected to come through direct redundancies. The news has sparked a wave of protests, including political debates at both the cantonal and federal levels. In the Lucerne Cantonal Council, members debated the job cuts, with some parliamentarians calling for government intervention to help preserve jobs. However, the majority of the council rejected proposals for state subsidies, emphasizing the need to respect the principle of entrepreneurial freedom.

Despite the mixed reactions in the Lucerne Cantonal Council, there was broad support for motions brought forward by both Roth and Council of States member Damian Müller (FDP/LU), who have called for more significant support for the steel industry at the federal level. These motions aim to ensure that the steel industry remains a viable and competitive part of the Swiss economy, even in the face of international pressures and economic uncertainty. While the government has not yet taken any concrete action, the ongoing protests and political discussions suggest that the issue will continue to be a topic of concern in the coming months.

The situation at Steeltec is emblematic of broader challenges faced by the Swiss manufacturing sector, where global competition and economic downturns often put pressure on companies to reduce costs. However, many argue that protecting local jobs and maintaining Swiss expertise in key industries like steel production is vital for the country’s long-term economic health. The protests in Emmenbrücke reflect the growing concern among workers, unions, and environmental advocates that such industries should not be sacrificed for short-term profits or international strategies.

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