Wage protection:
agreement reached on wage-protection package with 13 measures, measure 14 improved
As with market access, a liberal labour market is also essential for the tech industry. Swissmem supports the wage-protection package with 13 measures. While no agreement was reached on the extraneous measure concerning dismissal protection for employee representatives, it was improved during the negotiations. Swissmem will therefore not oppose it.
For the Swiss tech industry, unobstructed access to the EU single market is key. With 56 percent of exports going to the EU, it is the most important sales market and provides an indispensable pool of workers. In today’s highly tense global situation, politically stable relations with the EU, which form an essential foundation for smooth economic cooperation, are gaining further in importance. This is true with respect to both Switzerland’s prosperity and its security. Euphoria would be misplaced, as every agreement requires compromises from both sides. Nevertheless, Switzerland has negotiated the Bilaterals III well and achieved a lot. The advantages clearly outweigh the disadvantages, and no alternative to the successful bilateral approach would offer Switzerland more benefits. Swissmem will engage in the parliamentary deliberations to oppose negative elements such as the unacceptably costly association with Erasmus. In the area of immigration, the same still applies: policymakers must finally establish clear and consistent order in the asylum system.
The Swissmem Council therefore decided unanimously in June 2025 to support the Bilaterals III, provided the liberal labour market was not put at risk. This criterion is fulfilled by the wage-protection package 1–13, which was agreed by the social partners and which Swissmem supports in full. No agreement was reached on measure 14, but improvements were made; Swissmem will not oppose it.
Bilaterals III: the bridge to equal treatment with EU and EEA states
We find ourselves in a transitional phase of global order: moving away from a rule-based, multilateral world towards block formation, power politics and isolationism. With “Buy European”, steel-protection measures and discriminatory depreciation laws, the EU and individual member states are creating trade barriers that would severely impact the export-oriented tech industry. Switzerland must avoid being gradually excluded as a third country. That would be an own goal for the EU in any case: the Swiss tech industry is a key player in European value chains and makes a decisive contribution to both the competitiveness and resilience of the EU.
Switzerland must therefore remain closely integrated into the single market. This will only work with the Bilaterals III, which create a level of economic integration comparable to that of the EEA. Without the Bilaterals III, Switzerland has no foundation on which to seek exemptions from discriminatory EU measures. With the Bilaterals III, however, Switzerland can build a bridge, as shown last week by the European Commission’s decision regarding the Industrial Accelerator Act. Switzerland will, in principle, be treated like EU and EEA states.
Free movement of persons: safeguarding labour market immigration while taking a firm political stance on welfare migration and abuse
Switzerland has also achieved a lot in the negotiations in relation to the free movement of persons. Migration remains limited primarily to gainful employment. Expulsion from the country as a punitive measure is still possible. The registration procedure for economically motivated short-term employment will be retained. However, Switzerland had to make concessions in terms of residence permits, which may lead to higher welfare expenditure. The escape clause is thus all the more important: firstly, it enables Switzerland to temporarily restrict excessive immigration – even against the will of the EU – in the event of serious economic or social problems. Secondly, the Confederation and the cantons must make maximum use of and even expand the room for manoeuvre in the field of asylum. The immigration of urgently needed and integration-ready workers must not be hindered or even made impossible by problems in other areas of migration.
Electricity agreement: long-term secure and cost-effective electricity supply
The new electricity agreement will link Switzerland with the European domestic electricity market, reinforce grid stability and improve the plannability of cross-border electricity current flows. The agreement is of strategic importance to the Swiss technology industry. It opens up the electricity market – albeit while retaining freedom of choice, allows optimum use of hydroelectric power and will tend to result in lower electricity prices.
Wage protection: agreement reached on wage-protection package with 13 measures, measure 14 improved
Swissmem has always advocated a liberal labour market as a key success factor for Switzerland as an industrial base. This also guided our position during the domestic implementation of the Bilaterals III. As a result, important improvements were achieved with regard to measure 14 concerning dismissal protection for employee representatives. Specifically: if an employer fails to comply with certain formal requirements, such as holding a discussion with the employee to explore alternatives to dismissal, the dismissal is no longer considered null and void. Instead, the formal defect can be remedied by subsequently completing the procedure. If this does not take place, the dismissal can be challenged as abusive, which may entail a penalty payment. Key concerns of the employer side were thus taken into account.
Cohesion payments: a justifiable price for EU market access
Finally, the Bilaterals III and thus the secure and improved access to the biggest economic and partnership of values have a price: the cohesion payments will rise over time to around CHF 40 per inhabitant per year. However, Swissmem considers this to be a justifiable cost.
Horizon Europe strengthens innovativeness – Erasmus+ offers too little added value
For Swissmem, full association for Switzerland in the EU’s Horizon Europe research programme is of great importance. Around one quarter of the funded projects favour Swiss SMEs which in turn gain access to expertise, networks and innovative markets. By contrast, Swissmem has rejected participation in Erasmus+. Compared with the existing Swiss solution, the additional benefit of association is too modest, given the considerably higher costs.
Swissmem supports the Bilaterals III – liberal labour market must be preserved – Swissmem