INTERNATIONAL LABOUR
OFFICE
GENEVA
—
November

ijth

Studies and Reports
Series C
No. 4

¡gso.

The Action of the Swiss Government
in Dealing With Unemployment

SUMMARY
The creation of a Federal Unemployment Fund and a Federal Unemployment Relief Office. — The establishment of relief works (for the
skilled, the unskilled and the professional classes). — Facilities for
finding employment. — Relief of the unemployed (total unemployment, partial unemployment, differential relief and relief to foreigners).
— The gradual suppression of relief.

Although the war occasioned extraordinary industrial activity in Switzerland, the problem of unemployment assumed
considerable dimensions. This was especially due to the deficiency in raw materials and the limitations on the exportation of certain articles of luxury (embroideries, for exemple)
to certain countries. Unemployment was on such a scale
that the existing insurance provisions • were insufficient to
remedy its consequences, and extraordinary measures of relief
had to be considered.
CREATION OF A FEDERAL UNEMPLOYMEYT FUND

On the 24th March, 1917, the Federal Council, in exercise
of the powers which had been conferred upon it at beginning
of the war for ensuring the safety of the country and the
maintenance of neutrality, issued a decree constituting a
Federal Unemployment Fund. This fund was to be fed by
a supplementary tax on war profits equal to one-fifth of the
amount of the principal tax.
The object of this Unemployment Fund was to enable the
Confederation to contribute by means of subsidies to the payments made by cantons, communes or public institutions
the object of which was to redieve the involuntary unemnlovment resulting from the war.
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3

Some months later, the elaboration of a more definite
scheme of relief for the unemployed was entrusted to a commission of employers and workers, on the proposals of which
the Federal Council issued on the 5th August, 1918, a decree
relating to the relief of unemployment in industrial undertakings and trades.
After these measures had been taken, the conclusion of
the armistice produced a sudden change for the worse in the
position of the labour market. The number of applicants
per 3 00 vacancies which was 99 in October, 1918, rose
to 134 in ïTovember, 181 in December, 1918, and 241 in January,
1919. This was, in the words of a message of the Federal Council to the Federal Assembly on the 27th May, 1919, from which
these figures are quoted, a veritable economic rout, caused by
the withdrawal of all war orders and by the increasing difficulty* of importing raw materials and of exporting manufactured articles, and intensified by the demobilisation of the
Federal army, by the return of numerous Swiss (amounting
to 2000 to 3000 persons capable of work) due to the German,
Austrian and Hungarian revolutions and by the arrival, due
to the same causes, of numerous foreigners. Unemployment,
partial or total, affected particulary the workers in the textile industry, the metal trades, engineering, watchmaking and
building. In the spring of 1919 a slight improvement took
place due to the cessation of the unemployment caused by
the bad weather of the winter, but the number of unemployed
persons whom the Federation had to relieve was still estimated at more than 20.000, exclusive of those who were
employed on short-time (1).
In these circumtances the measures taken in 1917 and
1918 had to be extended. This was done by a series of decrees
of the Federal Council :
1. 14th March, 1919, relating to unemployment among
non-manual workers (the decree of the 5th August, 1918,
only dealt with manual workers).
2. 31st March, 1919, relating to unemployment among
SAVÍSS subjects returned from abroad.
3. 5th April, 1919, relating to relief of persons unemployed
for causes not directly connected with the war (the earlier
decrees only dealt with unemployment due to the consequences
of the war).
4. 15th April, 1919, relating to unemployment among
persons employed by the Confederation (the previous decrees
only related to persons employed by private undertakings).
These decrees were afterwards consolidated into a single
decree the Decree of theFederal Council relating to the relief of the
unemployed, of the 29th October, 1919. This decree will be
dealt with in detail, but it will be well first to speak of another scheme of the Federal Government, namely the creation
of a special department for dealing with unemployment, the
(1) Message of the Federal Council of 30th May, 1919.

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Federal Unemployment Belief Office (L'Office fédéral d'assistance en cas de chômage) which was established by a decree
of the 21st March, 1919.
THE-FEDERAL UNEMPLOYMENT RELIEF OFFICE.

The functions of this Office extend considerably beyond
the mere relief of unemployed persons. They are directed
at the same time to the prevention of the evil.
They are
grouped under three heads, to each of which corresponds a
special Section of the Office, and which we will deal with
in turn :
1. The establishment of relief works ;
2. Facilities for finding employment ;
3. The relief of the unemployed;
4. A fourth Section will be devoted to the gradual suppression of relief.
,
I. The Establishment of Belief Works.
" The payment of allowances is only a palliative", says
the message of the Federal Council of the 30th May, 1919,
already quoted, "and it should only be considered as such...
The Federal Unemployment Belief Office must therefore aim
at the creation of work, not only for dealing with existing
unemployment, but also as a preventive measure of the widest
character. It must endeavour to offer work to every unemployed person, as far as possible in his own trade. Where
this is not possible, or where unskilled workers are concerned, "unemployed relief works" should be undertaken,
that is works which can be done by any unskilled worker
and in which full capacity of output does not depend upon
apprenticeship, but solely on practice".
This suggestion led to the encouragement, on the one hand,
of works for the general unemployed and, on the other hand,
of certain works for the professional classes.
(a) Unemployed relief works. — Provisions for encouraging the execution of relief works by the cantons were
introduced by a decree of the Federal Council of the 23rd
May, 1919 (1).
For the purpose of the application of this decree a circular of the 31st May, 1919, reminded the cantonal Governments that Federal subsidies to the cantons for certain Avorks
of public utility Avere already provided for by various Federal
laAvs (2), for the undertaking of clearing, re-planting, damming,
(1) Decree of the Federal Council relating to the combating of unemployment by the execution of various works, in particular of so-called unemployment works. This decree of the Council was confirmed-by a Federal
decree of the 27th June, 1919.
(2) Federal Law of the 22nd December, 1893, relating to the improvement of agriculture by the Confederation. Federal Law of the 11th October, 1902, relating to the supervision by the Confederation of the policing
of forests, and Federal Law of the 22nd June (no year mentioned) relating
to the policing of waterways.

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etc., etc. ; and that in cases where the execution of such works
appeared urgent in view of the conditions of the labour market the prescribed formalities for the approval of schemes
and the granting of subventions and advances would be simplified.
The works contemplated by the decree of the 23rd May
were all the works not provided for by the above-mentioned
laws and particularly the construction and repair of roads,
sewers, school and hospital buildings, etc. A credit of 10 million francs to be taken from the Unemployment Fund was
allocated to the subsidies to be granted by the Confederation
for these works.
The decree of the 23rd May also provided Federal subsidies, called subsidies for diminished output, intended to cover,
up to one-half, of the additional expenses resulting from the
employment of workers without training, in the carryng out
of the work undertaken.
On the 15th April, 1920, (1) the subsidies granted by the
Confederation amounted to 5.306.000 francs, the total cost
of the subsidised works being 44 million francs.
The position of the labour market having at this period
become normal, the Federal Council decided to grant no fur
ther subsidies to unemployed relief works which had not
yet been undertaken, and to carry forward the balance
of the sum allocated to be used for the purposes of encouraging the building of houses to remedy the housing shortage.
(b) Skilled and professional worTc. — The encouragement
offered by the Confederation related principally to work in
the building trade and in the professions.
1. Erection of buildings. — Decrees of the 23rd May and
15th July, 1919, (2) encouraged the erection of buildings with
a twofold object, that of remedying both unemployment and
the deficiency of dwellings.
The encouragement offered by the Confederation consists :
1. of a subsidy of 5 to 15 per cent, of the total cost of
construction, granted to the owner of the building on condition that the canton grants an equal contribution (3) ;
2. of a loan on mortgage at 4 per cent, up to a maximum
(1) See 14th Report (25th May, 1920) of the Federal Council to the
Federal Assembly on the measures taken by it under the Federal decrees
of the 3rd August, 1914, and 3rd April, 1919.
(2) Decree of the Federal Council for the encouragement of the erection
of buildings of the 23rd May, 1919. Similar decree of 15th July, 1919. These
two decrees of the Federal Council were confirmed by a Federal decree
of the 27th June, 1919. See also circular of the Department of Public
Economy to the Cantonal Governments relating to the encouragement of
the erection of buildings, and regulations for the execution of the decree
of the Federal Council of the 23rd May, 1919, for the encouragement of
the erection of buildings, 31st May, 1919.
(3) Credit of 10 million francs to be taken from the Unemployment
Fund.

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of 30 per cent, of the total cost of construction, on condition
that the canton contributes half this amount (1).
The amount of the subsidy depends generally on the extent to which the erection of the building is capable of relieving unemployment and, also, of relieving the scarcity
of dwellings.
This measure did not produce the results expected, viz., the
recovery of activity in the building industry/ As appears from
the 13th Report (15th November, 1919) of the Federal Council to the Federal Assembly on the measures taken under
the full powers, the application was delayed by many administrative and technical difficulties. Nevertheless, by the
15th April, 1920, 8.775.000 francs had been granted in subsidies, and loans to the amount of 6.646.000 francs had been
approved. (2)
The provisions adopted were continued with some amendments in a new decree of the Federal Council of the 11th
May, 1920 ; but as at that period unemployment had become normal, the principal condition to be taken into consideration in the distribution of subsidies among the various
schemes of construction was that of relieving the scarcity
of dwellings as effectively as possible. The need for remedying unemployment has disappeared in this department.
2. Work in the Professions. — The professional workers
were less fortunate than the manual workers, and continued to suffer from unemployment, especially in the technical professions, many engineers previously employed abroad
having returned to Switzerland without finding ' employment there.
A decree of the 16th December, 1919, (3) opened a credit
for the services of the Federal Administration, to be taken
from the Unemployment Fund, for the purpose of executing
certain works, such as gauging, geological research, preparation of schemes for the utilisation of natural forces, historical
research, etc., calculated to employ in the national interest
the unemployed persons in the professions. The same credit
could be used for subsidies to cantons which increased their
staff "expressly with this object", and also to the communes
and to public institutions.
The proposals relating to the execution of extraordinary work proceeding from the various departments of the
Federal Administration were not so numerous as was expected, for on the 1st April, 1920, (4) the credits granted did
(1) Credit oí 12 millions to be taken from other Federal Funds.
(2) See 14th Report, 25th May, 1920, of the Federal Council to the
Federal Assembly on the measures taken by the Council by virtue of the
Federal decrees of the 3rd August, 1914, and the 3rd April, 1919.
(3) Decree of the Federal Council of 16th December 1919, relating to
the relief of, professional workers without employment, or employed otherwise than in their profession.
(4) 14th Report of the Federal Council already quoted.

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not yet exceed 270.000 francs to the Federal Administration
and 6400 francs to the cantons, 1.223.000 francs remaining
available. (1)
II. Facilities for finding

Employment.

The second Section of the Federal Unemployment Relief
Office deals with with the facilities for finding employment.
It set itself to complete the system of public labour exchanges
which already existed before the war under the name of labour offices (offices de travail) (2) and to tighten the bonds of
co-operation both with each other and with the private employment agencies.
The existence of this network of employment exchanges
necessary to the proper organisation of the labour market,
became absolutely indispensable for the purpose of administering a scheme of unemployment relief. The importance
of this function will be seen in the next section. Here we
will confine ourselves to the provisions for finding employment.
The " labour offices " were already combined into an association which had entrusted to one of them, the labour office
of Zurich, the function of a central office for co-ordinating
the activity of all. In order to avoid any overlapping, a decree
of the Federal Council of the 6th January 1920, issued after
agreement with the Association of Labour Offices, relieved
the Zurich office from its functions as a central office and
entrusted them to the Federal Unemployment Eelief Office,
which established, as part of its organisation, a Federal
Central Employment Office, at Berne.
In each canton there must now exist an employment
exchange, to which it is the duty of the communes to communicate every week the demands for employment received,
and to which the employers and the trade associations of
employers and workers must also, under the provisions of
the decree of the 29th October, 1919, give notice of vacant
places. The cantonal offices transmit these communications
to the Federal Central Office. The latter publishes, in a
weekly bulletin entitled "The Swiss Labour Market", a complete table of the labour market with a detailed list of
vacancies notified and applications for employment in the
various occupations. This list gives the cantonal office at
(1) As another measure "for the establishment of relief work" may be
mentioned the decree of the Federal Council of 6th December, 1919, for
the prevention of unemployment due to the excessive importation of furniture. It must be pointed out, however, that a general permission transport was granted on the 10th December across the Swiss-Italian and SwissFrench frontiers. The prohibition, therefore, only affects furniture coming
from Germany or Austria, and was introduced on account of the advantage which was taken of the depreciated German and Austrian Exchanges to the detriment of Swiss production.
(2) See Quarterly Bulletin oí the International Association for combating
unemployment (l'Association internationale pour la lutte contre le chômage),
July to September, 1913, pp. 886-899..

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which the vacancies has been notified or the application
made, and thus enables each office to communicate with the
others with a view to placing in another locality applicants
for employment whom they have not been able to place
locally.
During the month of July, 1920, the 19 public employment
offices received 12,128 offers of employment and 10,309
demands for employment, and had effected 7,443 plaeings,
out of which 1,456 workpeople were placed outside the locality at which thy registered. The activity of this organisation
will undoubtedly be further developed.
The part played by the Federal Central Employment Office
with regard to the entry into Switzerland of foreign workers
should also be considered here.
Every request for entry is transmitted by the Central Office
for the Control of Foreigners (Police des étrangers) to the
Central Employment Office, which gives its opinion on each
request, taking into account the state of the labour market.
The requests for entry, indicating the employment which the
foreign worker proposes to take, enable the Central Employment Office, in case the request for entry is rejected, to
. propose immediately to the employer the engagement of
Swiss workers or employees. (1)
III. Belief of Unemployed Persons.
The relief of unemployed persons is the third function of
the Federal Unemployment Belief Office. This consists essentially in administering the decree of the Federal Council of
the 29th October, 1919, and of the subsequent decrees which
we shall specify in the following paragraphs.
The relief of unemployed persons contemplated by the
decree of the 10th November, 1919, may be granted in three
different cases : Total unemployment, that is to say, where
the worker is entirely without employment; partial unemployment, that is to say, where the person concerned is only working short time; and, thirdly, cases in which an unemployed
person entitled to relief has accepted, as a last resource, a
situation insufficiently remunerated (differential relief).
In the first place, we will analyse in detail the provisions of the decree relating to total unemployment and, shall
then consider the special provisions for partial unemployment
and for differential relief. In a concluding paragraph we
shall deal with the provisions relating to foreign workers.
A. Total Unemployment :
1. Conditions of admission. — The applicant must be
a Swiss subject capable of work, 16 years of age or over,
must have regularly carried on a lucrative employment and
be in straightened circumstances as the result of involuntary
unemployment.
(1) 13th Report of the Federal Council to the Federal Assembly already
quoted, p. 96.

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" Seasonal unemployment ", that is to say, unemployment
which is common to the occupation at certain periods, does
not give a right to relief unless it was formerly necessary
for the unemployed person to work during such period and
he is unable to find such work. Relief for lack of work outside
of the worker's trade cannot in any case commence before the
expiry of a month after the commencement of the seasonal
unemployment. Short periods of unemployment due to bad
weather are excluded from relief.
2. Amount of relief. — This is proportional to the normal earnings of the unemployed person, 60 or 70 per cent, of
such normal earnings according as the unemployed person
is single or has other persons dependent upon him. In no
case, however, must relief exceed certain maxima, varying
according to the cost of living in the various communes,
classified for this purpose in three categories, and according
to the number of dependents :
For a single unemployed person, a maximum of 5 francs
in the communes in which the cost of living is relatively high
or average; a maximum of four francs in the communes
where the cost of living is relatively low.
For unemployed persons with dependents, in the communes"
in which the cost of living is high, a maximum of 8 francs for
one dependent, 9 francs for 2 dependents, with an additional
50 ct. for each additional dependent; slightly lower maxima
in the two other categories of communes. .
The amount of relief may be reduced by the extent to
which the unemployed person possesses other sources of income or other means, and also if several members of the same
household are receiving relief at the same time.
The relief for total unemployment may be received in
addition to sums received through trade union funds,
provided the total amount received does not exceed 80 or 90
per cent, of the normal earnings, according as the unemployed person is single or has dependents.
Relief is not given, save in exceptional cases, for more
than 60 days of unemployment in the year.
3. Verification of the involuntary character of the unemployment. — The involuntary nature of the unemployment
must be proved at the beginning and during the continuance
of the unemployment. In order to ascertain that the
unemployed person has lost his employment involuntarily,
his application for relief is brought to the notice of his last
employer, who may oppose the payment of relief, subject to
the decision of the Conciliation Office or of the Federal Appeal Commission (Commission Fédérale de Recours) referred
to hereafter.
Thereafter everything must be done for obtaining other
employment for the unemployed person, and no relief will
be paid to him unless the cantonal employment office certifies that the applicant has personally endeavoured, from

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the day on which he claimed relief,, to find work through
the intermediary of such office, and that no suitable employment could be found for him. Recourse is also had to the
employment offices of the employers' and workers' organisations.
Suitable employment may include work outside the usual
occupation of the unemployed person, but adapted to his capacities. The unemployed person may also be required,
especially where he is single, to accept suitable employment
away from his place of domicile.
4. Participation of employers in the expenses of relief. —
This participation constitutes in some respects an innovation. Before the war the expense of benefits in case of
involuntary unemployment was generally left to the workers' organisations and the public authorities. The scheme
of unemployment insurance in the United Kingdom and
certain local institutions, such as the funds for relief in case
of crises of St.-Gall and Ghent and the unemployment fund
of Roubaix, were exceptions to this rule.
The extraordinary profits made by numerous undertakings during the war contributed to the idea that when
the unemployment crisis arose, the employers ought to contribute to the expenses of unemployment relief. Accordingly in Switzerland the Federal Unemployment Fund
was fed by a supplementary tax on war profits. Similarly,
certain representatives of manufacturers had taken the initiative of preparing and submitting to the Federal authorities
a scheme for the organisation of unemployment relief. "The
started from the principle that the owner of an undertaking should not be indifferent to his workers who suffered
from a diminution or loss of earnings, but that he should, on
the contrary, participate in their relief. What Avas beyond
the means of the employer should be borne by the public
authorities. " (1)
These principles were followed in the decree of the 29th
October, 1919. As we shall show later, relief against partial
unemployment is in certain cases at the exclusive charge of
the employer. For total unemployment there is participation
between the employer and the public authorities, the latter
not participating unless and until the owners of undertakings have fulfilled the obligations imposed upon them
and the funds thus collected are exhausted.
The payments of the employers are collected by the associations' to which they belong, and their rules on this point
have been approved by the Federal Department of Public
Economy.
The amount of the contribution to be furnished by each
employer is determined, subject to approval by the same
(1) Message of the Federal Council to the Federal Assembly ou unem«
ployment relief, 27th May, 1919.

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D e p a r t m e n t , by his association within the m i n i m u m and
m a x i m u m limits fixed as follows by t h e decree :
(a) F o r non-manual workers : m i n i m u m , t h e a m o u n t
of half a m o n t h ' s salary; m a x i m u m , t h e a m o u n t of three
m o n t h s ' salary.
(b) F o r w o r k e r s : minimum, t h e a m o u n t of one week's
wages ; m a x i m u m , the a m o u n t of six weeks' wages; provided t h a t in case of m o n t h l y salaries exceeding 500 francs
a n d weekly wages exceeding 84 francs the excess is not to be
t a k e n into consideration.
As a general rule each employer has only to contribute
t o w a r d s t h e relief of his own staff. E v e n t u a l r e p a y m e n t
of t h e contributions not utilised regulated by executory
provisions of t h e Federal D e p a r t m e n t of Public E c o n o m y .
As, however, such a rule might distribute t h e burdens
of relief too unequally if it were applied in an absolute
m a n n e r , the decree provided for t h e constitution fo
Common Funds, to which is t o be paid one-third of t h e total
contributions which the owner of an u n d e r t a k i n g m a y be
called upon to furnish, a n d which will be applicable indifferently to t h e relief of t h e employees of all t h e undertakings to which the various funds apply. An employers'
association m a y even prescribe, subject to t h e approval of
t h e D e p a r t m e n t of Public Economy, t h a t t h e total contributions for which its members are liable shall be paid to t h e
Common F u n d .
I n t h e case of employers not affiliated to a n y association entrusted with t h e collection of their contributions, t h e
d u t y is performed by t h e canton in Avhich the undertakingis situated.
The obligations of t h e owners of undertakings for relief
are limited to losses of earnings resulting from extraordinary
conditions created by t h e war. If t h e unemployment is
due to a n y other cause, t h e cost of relief is borne exclusively
b y t h e Public Authorities. Certain owners of undertakings
incapable of supporting t h e obligation for relief, such as
independent exaftsmen, m a y be exempted from such obligation
after consultation with t h e t r a d e association concerned. I n
certain classes of work in which there is no u n e m p l o y m e n t ,
b u t on t h e contrary a deficiency of labour, this exemption m a y be general.
5. Participation
of the Public Authorities in the expenses
of relief. — After allowing for the contributions of employers,
t h e expense of relief is borne in equal shares by t h e Confederation (Unemployment F u n d ) and t h e canton in which
t h e person receiving relief is domiciled. Where such person
was employed in an u n d e r t a k i n g having its seat in another
canton, t h e canton in which t h e person lives m a y charge
t h e other canton with one half of its contribution. T h e
cantons m a y also charge not more t h a n one half of their contributions to t h e communes concerned in their area.
Belief to Swiss subjects coming from abroad a n d to t h e

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discharged members of the staffs of the Federal Administrations, is exclusively at the charge of the Confederation
during the six months following the return to Switzerland
or the dismissal.
6. Settlement of Disputes. — Disputes regarding refusal
of relief are examined by Cantonal Conciliation Offices composed of representatives of the Employers, Wage-earners and
the Authorities concerned.
Disputes relating to the distribution of the expenses of
relief are dealt Avith by Commissions of arbitrators composed
of the President of the Conciliation Office, and equal numbers
of representatives of employers and of the authorities concerned.
The awards of the Conciliation Office and of the Commissions of Arbitrators are subject to appeal to a Federal
Appeal Commission whose decision is final.
B. Partial

Unemployment.

Whilst relief for total unemployment is paid through
the commune, relief for partial unemployment is paid through
the firm. The amount of relief is one half of the loss of earnings.
If the person suffering from partial unemployment obtains
supplementary employment or receives an indemnity from
trade union funds, relief must be reduced to the extent by
which the sum obtained by adding together the normal reduced earnings, the supplementary earnings, the trade union
benefit, and the relief exceeds the normal total earnings.
If the customary working hours'are not reduced by more
than 40% during a period of payment, the cost of relief is
to be borne entirely by the OAvner of the undertaking. Where
such reduction exceeds 40%, the owner of the undertakingbears one-third of the cost of relief.
The Common Fund referred to above assumes the libility óf the employer Avhen that part of his contribution which
is not paid into the Common Fund, is exhausted. The maximum amount of the participation of the Common Fund in
the cost of relief for the staff of any owner of an undertaking
may be limited with the approA^al of the Federal Department
of Public Economy and of the competent Cantonal Department. When the Common Fund, or such maximum amount
as the case may be, is exhausted, the cost of relief falls exclusively upon the Confederation, the cantons and the communes.
C. Differential

Belief.

The object of this form of relief is to
ployed persons to accept temporarily an
ducing less than the relief to Avhich they
relief is equal to the difference betAveen

encourage unememployment proare entitled. The
the full amount

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of relief and the wages. Any special expenses caused by the
acceptance of the new work, e. g.,, expenses of removal
in case of employment away from home are deducted from
the earnings for the purpose of fixing the amount of differential
relief.
In order to facilitate the acceptance of employment, the
Cantonal Department may, in addition, grant an extraordinary subsidy or a loan without interest. If the sum exceeds
100 francs, it cannot be allowed without the approval of the
Federal Department of Public Economy.
Differential allowances are charged to the owner of the
undertaking in the same proportion as relief for total unemployment.
The commune must specially notify to the Central Employment Office of the canton, the unemployed persons who
have accepted employment outside their usual trade, and
preference is to be given the latter for the vacancies occurring in their vocation.
D. Belief to Foreigners. (1)
Relief is only granted to foreigners out of employment on
the following conditions :
(1) If there is reciprocity of treatment as regards Swiss
subject out of employment in the country to which such foreigners belong, that is to say, if relief approximately equal
is expressly secured to them.
(2) That such foreigners have been employed in Switzerland or have attended a school there for at least one year
during the five years preceding the August, 1914.
The ground of this second condition is (2) "that foreigners Avho have not contribued to the prosperity of our national economy or have even supplanted our nationals during
their military service have not right to receive in addition
the benefit of relief. In view of the present abundant supply of labour the Swiss workers themselves have the greatest
interest in the return of these foreigners to their own countries".
Another provision protects the Swiss workers against
foreign competition. Article 3 of the decree of the 29th
October provides in effect that ths owner of an undertaking must not derive advantage from the fact that his employees or workers are foreigners, and he is bound to make
for such persons, even where they have no right to relief,
the same contributions as if they were Swiss.
The same Article 3 safeguards special Conventions with
foreign States.
(1) Article 3 of the decree of the 29th October, 1919.
(2) Circular of the Ferlerai Department of Public Economy to the Cantonal Governments and the Vocational Associations concerning unemploy
ment relief 10th November, 1919.

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IV.

GRADUAL SUPPRESSION OF RELIEF.

All this organisation of relief is destined to disappear. If,
notwithstanding this, we have thought it useful to analyse
its machinery, it is because it involves, as we have seen, more
than one interesting idea which will probably be taken up
again in the organisation of insurance.
. At the end of 1919, the Federal Legislative Councils adopted the following " postulates ". (1)
" The Federal Council is invited to revoke, as soon as
circumstances permit, the decrees relating to unemployment
relief ".
" The Federal Council is invited to make provision for
a thorough study of the question of dealing with unemployment, with a view to the preparation of a law of insurance
against the risks of unemployment, and to a better organisation of the facilities provided for finding employment for
workpeople. (2)
On the 18th May, 1920, a new decree of the Federal Council ordered the partial suspension of unemployed relief. This
suspension affects the following trades :
All branches of the building trade except paper hangers;
All branches of the wood and glass industries, except
wood-layers (poseurs de bois);
All branches of the metal trades except turners, electrical
mounters, stokers and engine-men, installers, engineers,
locksmiths, assistant mounters and labourers;
(1) 13th Report of the Federal Council already quoted, p . 96.
(2) Until the introduction of the proposed new legislation relating to
insurance against unemployment, the Confederation has continued to subsidise permanent institutions for insurance against unemployment.
For the years 1915 and 1916 the Federal subsidies consisted of the
repayment of one-fourth of the unemployment benefits paid by the institutions to their members. A decree of the Federal Council of the 14th
January, 1919, decided to raise from the Unemployment Fund the sum necessary to repay one-third of the relief so granted in 1917 and 1918. This
decree was renewed on the 24th February, 1920, for the year 1919.
The subsidies are subject to the following conditions:
"(a) The unemployment institutions must keep special accounts recording, in particular, the contributions of other public bodies, the contributions of members, the number of persons receiving benefit, the number of
days of benefit paid, the benefits paid-on the spot to persons involuntarily unemployed, and the Federal subsidy.
" (fc) The institutions must continue their operations until prevented by
force majeure.
" (c) The contributions fixed by the Statutes of the institutions must
not be reduced by reason of the Federal subsidy.
„ (d) The Federal subsidy must be allocated exclusively to the Constitution or the feeding of the reserve funds of the unemployment institutions, and be invested in safe securities.
" {e) The institutions must notify the Cantonal Governments concerned
of the share, of the Federal subsidy in respect of all the members living in
the canton ".

— 14

-

Certain branches of the clothing and textile industries)
hairdressers, hatters, furriers, tailors, weavers, spinners,
k n i t t e r s , dyers, rope-makers, etc.);
Tobacco Avorkers a n d millers;
Certain occupations in the printing trades (hand a n d
machine-compositors, chromo-printers, book-binders, etc.);
Certain branches of the hotel keeping t r a d e (gardeners,
master cellarmen, kitchen assistants and service-boys;
All branches of agriculture a n d horticulture.
Finally, all women workers except skilled workers in
watchmaking a n d embroidery.
This suspension was fully justified b y t h e state of t h e
labour market, for at the m o m e n t when t h e decree came
into force there were not more t h a n 9 persons in receipt of
relief in all t h e trades mentioned. However, t h e situation of
the labour m a r k e t having become worse in the a u t u m n , a
decision of the 30th September, 1920, of the Federal Departm e n t of Public Economy p a r t l y revoked t h e suspension of
relief decided upon in May, and limited such suspension to
t h e building industries, wood and glass industries, agriculture and to women workers, with the exception of workers in the embroidery, silk a n d w a t c h m a k i n g trades.
The decree of the 18th May, 1920, moreover, authorised
the Federal D e p a r m e n t of Public E c o n o m y to resume t h e
g r a n t of relief to certain categories in wich it h a d been susp e n d e d ; or, on the other h a n d , to extend t h e suspension of
relief to other categories according to the general condition
of t h e labour market. F u r t h e r , in view of t h e fact t h a t t h e
Federal E m p l o y m e n t F u n d was constituted by means of a
supplemental t a x the W a r Profits of the years 1916 to 1919
inclusive, sufficed to coved the expenses anticipated t h e
Federal Council decided on t h e 20th August, 1920, t h a t this
supplemental t a x should not be imposed for the years 1920
and onwards.
SOURCES :

Federal Decrees :
29th October, 1909, relating to the encouragement by the Confederation
of facilities for providing employment.
27th June, 1919, relating to the measures to be taken for dealing
with unemployment.
Decrees oi the Federal Council :
24th March, 1917, relating to the Unemployment Fund.
5th August, 1918, relating to relief in the case of unemployment in industrial undertakings and trades.
14th January, 1919, relating to subsidies to unemployment institutions.
14th March, 1919, relating to relief in the case of unemployment of
non-manual workers.
21st March, 1919, on the creation of a Federal Unemployment Belief
Office.
15th April, 1919, relating to relief in the case of unemployment to
non-manual and manual workers in the Federal Administrations and
undertakings.
23rd May, 1919, relating to the relief of unemployment by the execution
of various works, in particular, so-called unemployed relief works.

— 15 —
23rd May, 1919, for encouraging the erection of buildings.
29th October, 1919, relating to relief of the unemployed.
6th December, 1919, for the prevention of unemployment due to excessive importation of articles of foreign manufacture.
16th December, 1919, for the relief of intellectual workers without
employment or employed outside their profession.
6th January, 1920, relating to the Central Office of the Swiss Employment Exchanges.
11th May, 1920, for relieving the scarcity of dwellings by encouraging
the erection of buildings.
18th May, 1920, relating to the partial suspension of unemployed relief
Administrative 'Regulations :
Under the. decree of the Federal Council of the 23rd May, 1919, for encouraging the erection of buildings (31st May, 1919).
Under the decree of the Federal Council of the 29th October, 1919, relating to relief of the unemployed (10th November, 1919).
Circulars of the Swiss Department of Public Economy to the Cantonal Governments {and, as to certain of them, to Employers, and workpeoples,
Organisations) :
Relating to relief in case of unemployment in industrial undertakings
and trades (8th August, 1918, and 9th December, 1918).
Relating to relief in case of unemployment of non-manual workers
(14th March, 1919).
Relating to relief in the case of unemployment of non-manual and manual workers in the Federal Administrations and undertakings (15th
April, 1919).
Relating to the combating of unemployment by the execution of various
works, in particular so-called unemployment works (15th April, 1919).
Relating to the encouragement of the erection of buildings (31st May,
1919).
Relating to relief of the unemployed (10th November, 1919).
Relating to the partial suspension of relief and tests of genuine unemployment (30th September, 1920).
Messages of the Federal Council to the Federal Assembly :
Relating to the relief of the unemployed (27th May, 1919).
Relating to the measures to be taken for dealing with unemployment
(30th May, 1919).
Beports of the Federal Council io the Federal Assembly, on the measures
taken by the Council under the Federal decree of the 3rd August, 1914 :
10th Report (24th May, 1918), pages 60-61.
11th Report (2nd December, 1918), pages 73-77.
12th Report (20th May, 1919), pages 79-80 arid 115-119.
13th Report (15th November, 1919) pages 60-61 and 88-98.
14th Report (25th May, 1920), pages 62-68.
Report on the decree of the Federal Council of the 18th May, 1920, relating to the suspension of unemployed relief (29th June, 1920).
Decision of the Federal Department of Piiblic Economy, relating to the partial
suspension of unemployed relief (30th September, 1920).

— 16 —

STUDIES AND REPORTS
already issued.
ere the English or French text of n Report, h a s not y e t been published it
will be issued a t a later date.

Series A.
THE

AGREEMENT

BETWEEN

T H E SPANISH

WORKERS'

ORGANI-

SATIONS, issued on September 25th 1920. In English
French.
THE

DISPUTE

IN

T H E METAL

INDUSTRY

UNION CONTROL O F INDUSTRY,

issued

IN I T A L T .

and in
TRADE

on September 25th

1920. In English and in French.
A N N U A L MEETING OF THE B R I T I S H TRADES UNION CONGRESS 1920,

issued on October 4th 1920. In English
INTERNATIONAL

CONGRESS

OF W O R K E R S '

and in French.
I N T H E FOOD AND

DRINK TRADES, issued on October 11th 1920. In English and
in French.
T H E B R I T I S H GOVERNMENT AND T H E M I N E R S ' FEDERATION OF
GREAT BRITAIN. C O N F E R E N C E B E T W E E N SIR ROBERT HORNE

AND THE MINERS' FEDERATION,

1920.

issued on October 11th

In English and in French.

T H E CONGRESS OF T H E LABOUR AND SOCIALIST INTERNATIONAL,

issued on October 14th 1920. In English and in French.
T H E M I N E R S ' INTERNATIONAL CONGRESS, issued on October 19th

1920.

In English and in French.

T H E INTERNATIONAL

LABOUR

ORGANISATION.

A

COMPARISON,

issued on October 21st 1920. In English and in French.
T H E INTERNATIONAL

CONGRESS OF METAL W O R K E R S , issued on

October 22nd 1920. In English and in French.
T H E B R I T I S H GOVERNMENT AND T H E M I N E R S ' FEDERATION OF
GREAT BRITAIN.
C O N F E R E N C E B E T W E E N T H E GOVERN-

MENT AND THE TRIPLE INDUSTRIAL ALLIANCE, issued OH
October 26th 1920. In English only'.
T H E D I S P U T E I N THE METAL INDUSTRY I N ITALY.

TRADE

UNION

CONTROL OF INDUSTRY, issued on November 4th 1920,

French

In

only'.
Series B.

COAL PRODUCTION

IN T H E B U H E

DISTRICT.

Enquiry

by the

International Labour Office, end of May 1920, issued on September 1st 1920. In English and in French.
P A P E R S RELATING TO SCHEMES OF INTERNATIONAL ORGANISATION FOR T H E D I S T R I B U T I O N O F RAW MATERIALS AND FOOD

STUFFS, issued on October 5th 1920. In English
French.

and in

— 17 —
Series C.
° 1.

BRITISH

LEGISLATION

ON UNEMPLOYMENT

on October 26th 1920.
2.

In English

INSURANCE,

L ' A C T I O N GOUVERNEMENTALE DANS LA LUTTE CONTRE L E CHÔ-

MAGE E N ITALIE, issued on October 27th 1920.
only.
3.

issued

and in French.

T H E BULGARIAN

LAW ON COMPULSORY

vember 4th 1920. In English

In French

LABOUR, issued on No-

and in French.

Series D.
0

1.

STAFF REGULATIONS ON T H E FRENCH RAILWAYS, issued on Sep-

tember 4th 1920. In English

and in French.

Series H.
° 1.

CONSUMERS'

CO-OPERATIVE

SOCIETIES

IN 1919 (Denmark

and

Sweden), issued on September 8th 1920. In English and
in French.
2.

SEVENTH

CONGRESS

O F T H E BELGIAN

CO-OPERATIVE

issued on September 25th 1920. In English

OFFICE,

and in French.

Series K.
0

1.

F I R S T INTERNATIONAL CONGRESS O F LANDWORKERS' UNIONS
AFFILIATED TO T H E INTERNATIONAL F E D E R A T I O N OF TRADE

UNION, issued on November, 1920. In English and in French.
2.

AGRARIAN CONDITIONS I N SPAIN, issued on November 10th 1920.

3.

SMALL HOLDINGS I N SCOTLAND, issued on November 12th 1920.

In English
In English

and in French.
and in French.