The Council of States is discussing the fundamental issue of severance payments using a current example.
Almost 340,000 francs. That is how much Nicoletta della Valle will receive as severance pay after more than ten years at the head of the Federal Office of Police (Fedpol). The sum became known because the “Sonntagsblick” newspaper published the corresponding agreement between the Justice and Police Department of Federal Councilor Beat Jans and Office Director della Valle. 340,000 francs corresponds to the annual salary of the Fedpol director plus local allowance.
Questions are raised by the fact that della Valle will remain in office until the end of January, meaning he still has enough time to look for a new job. The case was discussed in the Council of States when it debated a proposal calling for the abolition of severance payments for top management in the federal government and companies close to the federal government.
Due to the secure employment relationship and the extensive protection against dismissal at the federal level, severance payments are not justified, especially for well-paid, top management.
For Bernese SVP Council of States member Werner Salzmann, the example underlines why such compensation is wrong. “Due to the secure employment relationship and the extensive protection against dismissal at the federal level, severance payments are not justified, especially for well-paid, top management.” In the private sector – in listed companies – such compensation components have been banned for ten years because of the “rip-off initiative”, stresses Salzmann.
«Enables a flexible personnel policy»
Urner’s Centre Council of States member Heidi Z’Graggen has spoken out in favor of the compensation on behalf of the majority of the State Policy Commission, “because it enables a flexible personnel policy, especially in the case of personnel changes as a result of new management.” Newly elected members of the state government must be able to quickly replace the personnel around them in order to realize their vision, said Z’Graggen.
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Heidi Z’Graggen, a centre-right member of the Council of States from Uri, is of the opinion that severance payments make personnel policy more flexible.
Keystone/Alessandro della Valle
The della Valle case has caused many in the Council of States to rethink their position. Pierre-Yves Maillard from Vaud, a member of the SP, announced that he had abstained from voting in the committee. Now things are different for him. The committee had been informed that severance payments would amount to a maximum of half a year’s salary. Now he has learned that della Valle is receiving a year’s salary, says Maillard, surprised.
The fact that the Department of Justice spoke of della Valle’s “resignation” in the press release also makes the Council of States suspicious. Peter Hegglin, representative of the Zug Center, is president of the Parliament’s finance delegation. The Federal Council periodically informs them about severance payments.
There is no severance pay in the event of resignation.
Without wishing to comment on the specific case of della Valle, Hegglin states in principle: “There is no severance pay in the event of a resignation.” Parliament is not satisfied with this. The Audit Committee wants to take up the case, as Council of States member Salzmann announces: “This case will be investigated, we will investigate all cases.”
Finance Delegation President Hegglin voted against the abolition of the “golden parachutes.” However, he welcomes the fact that the issue is being pursued further: “If there is a need for action, it can be adjusted.”
The next step to deal with the issue of severance pay will be the National Council’s State Policy Commission. If it is also in favour of abolishing it, Parliament will be able to debate a corresponding proposal.