Fight against moonlighting shows first success

Efforts to clamp down on illegal work in Switzerland are beginning to show results. The French-speaking part of the country has been taking the lead with stricter controls. But much more has to be done to prevent the "shadow economy" from growing.

Efforts to clamp down on moonlighting or illegal work in Switzerland are beginning to show results. The French-speaking part of the country has been taking the lead with stricter controls in some cantons but it is clear that much more has to be done throughout the country to prevent the “shadow economy” from growing.

A study produced at the University of Linz in Austria found that illegal work in Switzerland represents eight per cent of national domestic product. That means that in 1998, nearly SFr30 billion escaped the tax authorities and the insurance schemes. The study also found that the shadow economy had grown by 25 per cent over the past five years.

After Geneva, canton Vaud has been active in trying to bring offenders, both companies and the people who work illegally, to task. Since April, two inspectors have made 385 controls at building sites around the canton. In three out of four cases, action has been taken for offending the law.

The figures come as no surprise to Alix Briod, secretary of the Vaud Entrepreneurs’ Association. “It shows that this work was necessary and that our intuition was right,” he says.

Moonlighting in Switzerland centres mainly on the construction industry and in the hotel and restaurant trade.

The Swiss Union of Trades and Crafts, which represents small and medium-sized companies, has said that moonlighting has become one of its greatest pre-occupations. It has been working with the Confederation for the past six months on measures to combat moonlighting and these are due to be presented in April.

A survey last year among the employers showed that they clearly rejected moonlighting because it led to unfair competition. It also found that there were safety and quality problems when companies resorted to using unskilled foreign labour.

From staff and wire reports