Swiss firms cut working hours to counter franc's strength

Zurich

DISTEC AG, a precision machine toolmaker in the mountains of eastern Switzerland, aims to counter an unfavourable exchange rate by having employees work less.

Swiss industrial companies have faced tough times in recent weeks since the franc shot up against the euro after the central bank allowed the currency to float freely again. That makes their goods more expensive abroad, a particular challenge if they have a high local cost base.

Businesses such as Distec are taking advantage of a reduced-working-hour programme under which companies temporarily reduce hour…