Contents
The political rescue attempt came too late. Almost a fifth of the workforce will probably have to leave.
Stahl Gerlafingen is closing the production line on which classic steel beams are manufactured. A maximum of 95 employees will lose their jobs. Just two weeks ago, Stahl Gerlafingen put the mass layoffs on hold. That was after politicians got involved and promised help. The announced political measures came too late to maintain operations, according to a statement from the steelworks. Trade unions are now demanding a social plan and that politicians take action.
A mass layoff at Switzerland’s oldest steelworks was already an issue two weeks ago. The balance sheet was deep in the red, wrote Stahl Gerlafingen at the time. The closure of two production lines was under discussion.
It is now clear that one of the two production lines will be closed. Up to 95 employees lose their jobs – that corresponds to around a fifth of the workforce. However, a second production line for reinforcing steel – steel rods that are used to reinforce reinforced concrete – will continue to operate.
Steelworks blames EU for failure
Profile steel is produced on the production line affected by the closure; i.e. classic steel beams. The market environment is particularly difficult for profile steel. Since 2023, Switzerland no longer has its own quota for exports to the EU. That’s why exports have collapsed, the steelworks say. In doing so, the EU is violating the free trade agreement it concluded with Switzerland in 1972 and is practically making exports to the EU impossible.
Legend: The market environment for profile steel is a major challenge for Swiss companies. Exports to the EU have collapsed. Keystone/Christian Beutler
Added to this are energy prices. These are horrendous. Stahl Gerlafingen criticizes the fact that Switzerland does not support the steel companies financially, unlike EU states. Politicians must work for better framework conditions.
Help from politics came too late
The threat of mass layoffs brought politicians into the spotlight two weeks ago. The Solothurn federal parliamentarians submitted a motion calling for the steelworks to be saved – if necessary using emergency law. The Solothurn government council also got involved. Stahl Gerlafingen is systemically relevant for the whole of Switzerland.
We were very surprised by this support.
However, the promised measures came too late. From a business perspective, one can no longer be responsible for the operation of Profilstrasse, writes CEO Alain Creteur. “The reserves have been used up and we have to protect the rest of the plant.” In the message, Creteur further thanks the politicians for their support. “We were very positively surprised and would like to thank everyone involved for their commitment.”
Trade unions take a stand
The Swiss Employees Union is demanding political solutions to ensure the competitiveness of the company and thus the Swiss steel industry. Better framework conditions are needed.
The trade unions Syna, Unia and the Swiss Commercial Association are demanding that the consultation period be extended and that jobs be preserved. The information available does not clearly show why production capacity needs to be reduced.
Stahl Gerlafingen itself promises in the media release that a social plan will be implemented for those affected. The remaining job cuts should occur through natural attrition.