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Secret mass layoffs at Knecht Reisen? Now the owner of the company speaks
The accusation is pronounced: Aargau travel company, Switzerland’s number one in the long-distance travel business, is using salami tactics to massively cut more jobs than advertised. The owner of the company, Thomas Knecht, now contradicts with clear words.
Company owner and chairman of the board, Thomas Knecht (center), will also serve as CEO of the company founded in 1909 starting in 2021. Left: Roger Geissberger, the longtime CEO.
The corona pandemic is hardly hitting any industry as hard as travel companies. The fall holidays were still a ray of hope, some of them booked again, but since the second wave of infections swept across Europe, the outlook is bleak. At Knecht Reisen, the sales drop is 70 to 95 percent, depending on the division.
The company, based at Windisch AG, has 18 locations in Switzerland, from Basel to Lucerne, from Aargau to eastern Switzerland. Before Corona, the travel group employed almost 300 people, now there are significantly fewer. At the end of June, then-CEO Roger Geissberger announced that four branches would be closed by the end of 2020 and every fifth job would be eliminated, the “Aargauer Zeitung” reported.
In reality, however, many more jobs are being cut than the reported 20 percent, reports the “SonntagsZeitung” with reference to internal sources. In October, the fourth wave of layoffs took place. There is talk of salami tactics, and the bosses of various travel brands – Baumeler Reisen, Glur, Kira Reisen, House of Sport – have voluntarily resigned in recent months and weeks.
What is a layoff?
Specifically, the prosecution is in the room: Has Knecht Reisen been secretly given a mass dismissal without observing the relevant rules of the Code of Obligations? We speak of mass dismissal when a company does not lay off employees for individual reasons (behavior, performance), but for economic reasons. Layoffs in SMEs are considered collective layoffs if they are issued within 30 days in a company and affect at least ten employees.
Thomas Knecht, owner of the company, has yet to comment publicly on this. At the request of CH Media, he now firmly rejects the allegation of secret mass layoffs. Starting in 2021, Knecht will also be the group’s chief operating officer, with former CEO Roger Geissberger stepping down. Servant says:
“According to our investigations, there are no mass layoffs.”
He points out that austerity measures are being carried out in several cantons and in various places. Ten layoffs in 30 days, none of the different companies that belong to the Knecht Group has done so. Knecht does not want to comment on this, but according to information from CH Media, decommissioning is traditionally decentralized. A typical process is for a travel agency to shrink from four to three workplaces.
The authorities want to know exactly
The Aargau Canton Office of Economy and Labor now wants to know whether there is a mass layoff or not. Apparently, he received information from the employees and informed the company. Thomas Knecht says they are “in exchange” with the office in this regard. In the case of mass layoffs, the employer has to deal with various special regulations, among other things, it must inform the employees in writing before the decision and indicate the reasons, the number of people affected and the period of the layoffs.
Knecht does not deny that there are “painful measures”. Due to falling sales, “adjustments to staff capabilities” are inevitable. “To be fair, these take place at all levels, including management levels,” says the business owner. It could also affect well-qualified employees.
Those affected will be offered a job in other business areas
The Knecht Group is not only active in the travel business, but also in the transport and healthcare sectors. Thomas Knecht, former director of McKinsey Switzerland, emphasizes that they are trying to fill vacancies in other areas with employees from the travel sector in crisis. “We are happy that, thanks to diversification, we were able and still can offer internal vacancies to those affected,” says Knecht, who was chosen as one of the 100 most influential personalities in Swiss business by “Bilanz” magazine last year. .
A “greater number of employees” changed internally, and that cushioned the reduction, says Knecht. An industry change is not an option for everyone in the travel industry. “We respect the fact that not all employees who have been laid off take advantage of this opportunity, and neither do the freelance solutions that are offered,” says Knecht. There are currently more than a dozen vacancies in the Knecht Group.
