Swiss Limiting Clause - Literature review Example

Swiss Limiting Clause Introduction Switzerland is the third largest business or rather economic partner to the European Union, after the United States and china, immigration is a burning issue despite its economic success. The Swiss People’s Party has been hauling blames on the increasing immigrant population. It claims that this influx of foreigners has resulted in increased crime levels, increase in rent and crowded public amenities. Initially, the Swiss immigrant policy granted free movement of people into the country provided that they are members of the European Union. This policy however did not limit Swiss industries from looking for skilled personnel from outside the country. In comparison to other countries, the regime mandated to govern employment in Swiss is generally more independent and convenient towards the employer than in many other developed countries that belong to the European Union. Unemployment levels in Switzerland rated traditionally are relatively low (Hammer, 1985). The Swiss government has set a number of laws limiting a number of European Union citizens to work in Switzerland. A bilateral verdict concerning free movement of people contains a safeguard clause that permits Switzerland to introduce quotas from the European Union. The European Union wishes it could reverse the decision since it is not justified in the perception of the economic status in Swiss. Under a major labor accord with Brussels from 1999, Switzerland is allowed to enact clauses that inhibit immigration if a certain number of EU citizens are exceeded (Geiser, 2013). However, Switzerland is not a member of the EU but it is among the major business partners to the 27-nations that constitute this bloc. Setting limiting clauses affect businesses conducted among countries. This effect is however a two-way traffic thing, both members of the partnership are bound to experience the consequences of such a move (Church, 2007). The Switzerland’s decision to revive immigrant quota and discard laws that allowed free movement of people has captivated the attention of business expert and the world at large. This move has emanated heated debates on its justification and the long run consequences or benefits if either. This move has resulted in rivalry and narrowing of the Swiss market since the EU’s justice commissioner clearly stated that inhibiting free movement of people is not separable from goods, capital and services. This implies that the Swiss access to EU’s single markets have been limited too. Limitation to access the single market could be the biggest blow to Switzerland’s currently thriving economy since the EU countries are a major market for Swiss products (Shotter, Barker & Parker, 2013). The nervousness in the Swiss government about the introduction of this clause is evident because the clause was passed by the narrowest of margins; 50.3% voted in agreement and 49.7% declined the introduction of this clause. Swiss is more of a divided country than a united state. The bitter memories of 1992 have been revived, when the Swiss voted against EU membership. The voting was however conducted with bias and selfish interests in tribal distinctions. All Switzerland French voted in favor of EU membership while the Italians and Germans voted against EU membership. A repeat of these linguistic divisions has reappeared in the heated quota debate. Effects of Swiss Restriction of European Workers in Company Competitiveness The limiting clause is an easy said than done deed, the Swiss government is under serge to implement the quota law that the people voted for without dismantling it functional business relationship with the European Union. The quota manifestation is not stipulated in the proposal supported by voters; it just stated that the Swiss people should be preferred for the available job opportunities in Switzerland. This quota system has brought a cloud of tension among its citizens since it is painful to bear the felling that your colleague might have voted in favor of the immigrant limiting clause that threatens your livelihood. According to the Swiss spirit of democracy, the people’s word is the final word this therefore renders the European Union’s response on the matter inevitable. It is just the matter of how much effect will be cause to most Europe’s strongest economies (Tartar & Bosley, 2014). The Swiss government is well aware of what immigrant limitation clause means to the Swiss export business. Switzerland is well aware that the implementation of this clause would mean losing the European single market. The Swiss government is now appealing for a polite gesture on this vital law by the 28 members of the European Union. The government intends to hold explanatory talks with the 28 member states of the European Union and draw a friendly enforcement plan to the immigrant limiting clause so as not to ground its own economy. Swiss president admits that the voting of the immigrant limiting clause is a hard decision that the Swiss people will have to leave with (Schwok, 2009). It is a fundamental reality that most of the best performing companies in Switzerland looked outside the country for expertise. These companies are likely to underperform if the free movement of people is inhibited. The Swiss population is capable of providing personnel for these companies but since the skill variety has been limited, then the world class companies from Swiss might have their performance undermined. The act’s perspective is limited to the fact that its citizen will be prioritized in the job market but it fails to consider the company’s performance in the world market. The other crucial bite of this accord is the fact that Swiss citizens would be undermined in the European Union member states, so its citizens are likely to face denial in foreign job opportunities. The broad aspect of working in foreign countries and leasing back the experience to once mother country will be undermined by introduction of this accord. Most countries if not all, would gladly indulge in partnerships from which they are likely to gain at some point. Therefore, it would be impossible for a country to offer job opportunities to citizens from a country that does not extend back this kind gesture (Vahl & Grolimud, 2006). Introducing accord that limit immigrant reduces competition for jobs in a country. This attitude tends to give skilled personnel the tendency of sleeping on their job since they are not facing any competition even if they are underperforming. The company is also limited to a small population of skilled personnel to choose from thus it is bond to experience a decline in its productivity. Allowing immigration of workers granted by free movement offers competition to the local personnel and this therefore makes it necessary that a worker in any position of management either delivers or fall into the risky zone of being fired. This move reduces sluggishness among employees and pushes them to expand their capability by furthering there studies. A large population craving to increase their know-how gives companies a large variety to choose from and this directly improves the quality and increase the quantity of goods and services produced by a company over a certain time range. The success of an individual company has a positive impact on the country’s economy as a whole (U.S. Department of Labor, Bureau of Labor Statistics, 1980). Goods and services produced by the Swiss companies are likely to perform poorly in the world market. To begin with, the European Union is likely to ban goods from Swiss to be sold in its single market. European single market is a major market for Swiss exports, thus banning Swiss products from this market is likely to deteriorate the Swiss economy. This move by the Swiss people has received harsh responses from people all over the world. This perception by the entire world unions other than the European Union implies that Switzerland has acquired a negative global Image. On this accord, it is very important to note that an economy cannot rely entirely on trade within its borders for sustainability. Therefore, the fact that the global Swiss image would be negative, then it is obvious that its product would not fair on properly in the world market. The Swiss thriving economy is likely to be grounded by this move (Tartar & Bosley, 2014). The European Union has been Switzerland’s main partner; therefore, banning the unions citizens from seeking jobs in Switzerland is a move that the union is not going to take kindly. Some countries or the entire union might decide to impose embargo or total ban for goods from Switzerland. The Swiss government is well aware of this possibility and it is trying to lighten the intensity of the implementation of this clause. If the negotiations fail and the European Union decides to impose total ban on products from Switzerland then the Swiss export business is likely to fall out of the world market. A reduction in market directly translates to reduced sales by companies. The companies reduced sales means that a company has to adjust its production appropriately; in this case it would be forced to reduce production. A reduction in production would mean that many employees would not be necessary and therefore the company might decide to reduce its employees and this would mean that some of the Swiss citizens would be fired to meet this current trend. Therefore, if things fall out of hand and this becomes the situation then it will obviously mean that the restriction of European workers would not have attained its primary objective (Lavenex & Ucarer, 2003). The immigrant restriction accord involves imposing worker permits on foreigners who would wish to work in Swiss, this laws are supposed to make it unfavorable to work in Swiss as an immigrant. But the law tends to overlook the fact that it would be creating a country where skilled personnel will be monopolistic. This few skilled personnel will be highly demanded for by various firms, thus they are bound to ask for higher pay which the company might not be ready to offer. The success of a company considers how many profits a company is likely to earn after a business year. Demand for higher pay by few skilled personnel will definitely raise the operational cost of a company thus it will be spending much money on internal factors thus limiting its production quantity and quality. This will decrease the competitiveness of the Swiss companies in the world market and eventual the per capita income or rather the country’s economy (RT, 2013). Banning immigrants is a move that definitely attracts varied response if negotiations with the unions or countries concern are not properly done. This mixed reaction may be as obvious as similar moves on the nation or unpredictable, like preservation of the business relationship. If the countries affected by the Swiss decision decided to prohibit the Swiss people from emigrating into their country then education is likely to be affected. Europe harbors some of the most famous and world’s treasured universities and business schools. Therefore, banning the Swiss people from accessing these countries means that its students would be limited to educational institutes in Switzerland and therefore these would not diversify the level of expertise in its business students. The Swiss companies are therefore highly disadvantaged since it is forced to employee people with indigenous business expertise, thus new ideas would not be introduced to the company’s operation: therefore they would be impaired and risks operating with staff with outdated expertise. It is undisputable that foreign employees bring new ideas that might be helpful to a business venture. A management that incorporates people with different expertise and backgrounds is likely to compete favorably in the world market. Since the immigrant restriction accord is denying companies this diversity, they are likely to perform poorly in the world market (Trampusch & Mach, 2011). In conclusion, the Swiss people have accorded the government a very difficult task. The government is supposed to strive to reduce the harm that this decision that voters have made; barring immigrant workers from getting job in Switzerland and instead the locals should be prioritized for the available opportunities. The government has resolved to hold explanatory talks with the union member countries so as to as to come to a fair business agreement. The government is however supposed to make this voters’ decision to a law in June. This accord is a sensitive issue that puts the economic status of the future Switzerland to a weighing balance. The government is therefore supposed to take a holistic approach to the whole scenario since they cannot afford to make a mistake because so much is at stake. The fact that the accord was arrived at by a narrow voter percentage, implies that even the Swiss people are nervous about the implication of this accord. Racial divisions in a country could be a devastating tragedy that can cost the country’s image to the outside world. Therefore, citizens should bar their racial difference in making important state decisions (Breiding, 2013). In addition, the law makers or rather the government should subject and critically analyze the proposed amendments on the existing constitution before mandating the public to pick the one that they prefer. The Swiss government is crying over spilt milk by hoping to lessen the impact of the voters’ choice to limit immigrants from getting employment in Switzerland and restricting their movement into the country. The government is however to be blame for the inclusion of this accord in the constitutional amendment. A government elected by the people is supposed to improve the current living standards of the people and not demolish what has been worked for over the years. It is evident that the consequences of this accord are going to be harsh to the Swiss people and the government is well aware of it. So the blame may not entirely be laid on the citizens (Gross, 2006). However, what has been done cannot be reversed, so the government needs to accept its fate and live with it. Acknowledgement of the consequences that the country is likely to experience as a result of this accord is step towards coming to terms with the offended unions. The Swiss government should critically analyze this accord and enforce it in a manner that would not ground its economy. Reference List BOSLEY, C. (2014). Swiss Brace for Sour EU Relations after Immigration Vote. Bloomberg. Retrieved From: http://www.bloomberg.com/news/2014-02-09/swiss-brace-for-sour-eu-relations-after-immigration-vote.html BREIDING, J. R. (2013). Swiss Made: The Untold Story Switzerland’s Success. Profile Books. Print CHURCH, C. H. (2007). Switzerland and the European Union: A close contradictory and Misunderstood Relationship. Taylor & Francis. Print GEISER, U. (2013). Swiss Curb EU Immigration. SWI. Retrieved From: http://www.swissinfo.ch/eng/swiss_news/Swiss_curb_EU_immigration.html?cid=35610566 GROSS, M. D. (2006). Immigration To Switzerland: The Case of the Former Republic of Yugoslavia. World Bank Publications. Print HAMMER, T. (1985). European Immigration Policy: A comparative Study. Cambridge University Press. Print HAASE, N. (2014). EU Concerned about Swiss anti-immigration Vote. Retrieved From: http://news.ge/en/news/story/79281-eu-concerned-about-swiss-anti-immigration-vote LAVENEX, S., & UCARER, E. M. (2003). Migration and the Externalities of European Integration. Lexington Books. print SCHWOK, R. (2009). Switzerland- European Union: An Impossible Membership? Peter Lang. World Bank Publications. Print TARTAR, A., & BOSLEY, C. (2014). Swiss Immigration Curbs seen as Threat to Economic Growth. Bloomberg. Retrieved From: http://www.bloomberg.com/news/2014-02-19/swiss-immigration-curbs-seen-as-threat-to-economic-growth.html TRAMPUSCH, C., & MACH, A. (2011). Switzerland in Europe: Continuity and Change in the Swiss Political Economy. Taylor & Francis. Print THE UNIVERSITY OF CALIFORNIA. (1961). The Swiss Economy. The University of California. Print VAHL, M., & GROLIMUD, N. (2006). Integration Without Membership: Switzerland’s Bilateral Agreement with European Union. CEPS. Print U.S. DEPARTMENT OF LABOR, BUREAU OF LABOR STATISTICS. (1980). Immigration and the Labor Force. U.S. Department of Labor, Bureau of Labor Statistics. Print SHOTTER, J., BARKER, A., & PARKER, G. (2013). Swiss Access to EU Market under Threat after Immigration Vote. Financial Times. Retrieved From: http://www.ft.com/cms/s/0/f534a5fe-919c-11e3-8fb3 00144feab7de.html#axzz2twd7PXJQ RT. (2013). Switzerland to Restrict Immigration Despite EU Anger. RT. Retrieved From: http://rt.com/news/immigration-quotas-switzerland-restrict-372/ Read More