Companies seek to cushion the economic blow of coronavirus
Some companies have had to cut back on working hours because of supply chain disruptions for goods coming from China.
Keystone / Alex Plavevski
As some Swiss businesses are forced to cut back on working hours due to the coronavirus, more are requesting financial support from authorities to keep paying employees.
Most of the companies that have filed applications with local authorities are in the tourism, retail and gastro industries; however, those with manufacturing operations in China have also filed requests according to a survey by the Keystone-SDA news agency.
In Switzerland, employers can reduce employee working hours if a business temporarily has too little or no work. Under the scheme the employer can receive financial support from cantonal authorities in order to continue to pay workers. Employees receive partial employment benefits for working reduced hours that amounts to 80% of lost earnings.
Some cantons have created special coronavirus websitesExternal link to help facilitate requests and answer common questions. It also specifies what documentation companies need to provide to prove that they were affected by the coronavirus.
More
More
Coronavirus cases are spreading in Switzerland
This content was published on
Federal authorities are taking unprecedented measures to contain the virus.
In addition to production slumps, official measures taken by the government is also a reason to request compensation. After the government’s announced a ban on gatherings of more than 1,000 people last Friday, cantons expect more requests to come in.
Thus far, companies that have requested support largely come from the tourist industry as well as retail, especially in Lucerne and Bern, which are popular destinations for Chinese tourist groups.
Supply chain disruptions
Some cantons have also received requests from companies suffering from manufacturing and logistical disruptions. Four companies have applied to the canton Aargau authorities for support due to supply bottlenecks for goods from China, Korea or Italy.
According to a report from the Swiss public television, only five companies applied for reduced-work compensation in February from the Zurich region, but this is expected to rise as the office has received many requests for information about the requirements to reduce hours.
On Saturday, the Swiss government announced that it will lower its economic growth forecast because of the coronavirus outbreak. The last forecast published in December predicted gross domestic product growth of 1.7% this year. The revised forecast is expected on March 17.
Popular Stories
More
Climate adaptation
Why Switzerland is among the ten fastest-warming countries in the world
This content was published on
By 8am on Saturday, an 11-kilometre queue had formed at the Gotthard tunnel’s northern entrance, with drivers facing nearly two hours of delays.
Plant-based meat market in Switzerland set to grow to CHF361 million by 2030
This content was published on
Switzerland’s market for plant-based meat alternatives has a potential value of around CHF 242 million this year, though it remains a niche market.
This content was published on
The army is looking for a modern solution for its decommissioned fortress mortar bunkers, with plans to turn them into hardened defence hubs.
This content was published on
Spain ended Switzerland’s run in the Women’s Euros on Friday, but fans in Bern made history with the largest supporters’ march in Women’s Euros history.
This content was published on
Solar energy pioneer Raphaël Domjan and his team continued preparations for the altitude record attempt at 10,000 metres with the SolarStratos solar aircraft.
This content was published on
Cattle in the canton of Geneva and in the neighbouring region of Terre Sainte in the canton of Vaud are being vaccinated against the contagious viral skin nodule disease. The first cases of the animal disease were reported at the end of June in France, just outside Geneva.
Fewer attacks on Swiss ATMs but their future remains uncertain
This content was published on
Bank ATMs in Switzerland are less prone to attacks by criminals, but their future remains uncertain given the less active use of cash by the population.
This content was published on
A series of rockfalls occurred above the village of Brienz between 9 and 12 July. According to the municipality of Albula, the overall situation remains tense. Several people disregarded the ban on entering the area around the village.
This content was published on
Arosa Bergbahnen achieved the highest figure in its 95-year history in the 2024/25 financial year with net revenue of CHF 37 million. Arosa Lenzerheide was able to capitalise on strengths such as snow reliability and the size of the ski area in a long winter season, the company announced on Thursday.
Coronavirus: Head-shaking doctors and non-hand-shaking workers
This content was published on
A day after the first confirmed Swiss case of coronavirus, some doctors have accused the government of “irresponsibly” underestimating the danger.
Swiss industries brace for impact of coronavirus outbreak
This content was published on
Various Swiss industries and the domestic tourism sector are preparing themselves for a downturn caused by the coronavirus epidemic.
You can find an overview of ongoing debates with our journalists here . Please join us!
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.