When the world gets closer.

We help you see farther.

Sign up to our expressly international daily newsletter.

Already a subscriber? Log in.

You've reach your limit of free articles.

Get unlimited access to Worldcrunch

You can cancel anytime.

SUBSCRIBERS BENEFITS

Ad-free experience NEW

Exclusive international news coverage

Access to Worldcrunch archives

Monthly Access

30-day free trial, then $2.90 per month.

Annual Access BEST VALUE

$19.90 per year, save $14.90 compared to monthly billing.save $14.90.

Subscribe to Worldcrunch
Switzerland

How The Swiss Army Knife Survived 9/11

It can get you out of a jam and open wine, but the iconic multi-use companion narrowly escaped collapse after the War on Terror made it suddenly hard to carry everywhere.

26 million Victorix pocket knives are sold every year
26 million Victorix pocket knives are sold every year
Wolfgang Koydl

IBACH - The corkscrew on the legendary Swiss Army Knife is regarded as one of the most essential parts of the product. But it was also the one that gave its makers the most headaches in the beginning.

Because unlike blades, scissors, can-openers or magnifying glasses, its rounded spirals didn’t fit neatly into the construction. Beyond that, the metal had to be forged — a process that, suitably enough, was done in France, home of great wines in traditional corked bottles.

All of this makes the corkscrew the only exotic aspect of an otherwise entirely Swiss product, which has a brand recognition value around the world comparable to industry icons such as Coca-Cola, Nike or Apple.

Bright red with a luminous white cross, the jackknife with the innumerable functions embodies the values of the Swiss Confederation.

"The pocket knife is a symbol of Swiss quality and dependability," says Carl Elsener Jr., fourth-generation CEO of the family-run company Victorinox that makes the knives.

Every day, the company located in the small town of Ibach in central Switzerland ships some 120,000 of its knives. That's 26 million a year, and not only are they found on every continent in the world, but they have also traveled to outer space. Swiss pocket knives were among the basic tools accompanying every space shuttle mission.

[rebelmouse-image 27087121 alt="""" original_size="500x333" expand=1]

Comes in all shapes and sizes - Photo: Jim Pennucci

And yet the market is by no means saturated. There are, after all, 350 different models from which to choose, ranging from the no-frills standard knife to the Swisschamp with 33 functions, including linesman’s pliers and a chisel. As it is for other companies, China is a huge growth market for Victorinox. "Imagine if we could sell a knife to every single Chinese!" Elsener says with a dreamy smile. "And then of course there are all the knives that people lose and that have to be replaced."

Elsener’s great-grandfather Karl started out in Ibach as a self-employed cutler 129 years ago. Seven years later, in 1891, he landed a major contract with the Swiss army to deliver a soldier’s knife he had developed. It went on to become the world-famous Swiss Army Knife, and it overshadowed the market for the many household and professional knifes that Victorinox produced.

The post 9/11 business plummet

But the success story escaped an abrupt and catastrophic end by just a hair. "Our company has never been as hard-hit as it was by the Sept. 11, 2001, terror attacks in New York and Washington," the 55-year-old Elsener says. Almost overnight, after sharp objects were prohibited on airplanes, sales of the fireman-red knives — which had been a duty-free staple in airport stores and on flights — collapsed.

"We lost over 40% of our business,", Elsener recalls. "Airports sent vast quantities of the knife back to us." He is proud to this day that the company was able to absorb the losses without firing a single employee. "Jobs have always been a main focus for us," he says. "We really do see ourselves as a big family, in good times and bad."

One of the creative ways the company saved jobs was to "loan" Victorinox workers to other businesses in the area. At the same time, Victorinox strengthened the focus on its other products — traditional household knives along with the Swiss Army watches and luggage that Victorinox started producing in 1989 and 1999, respectively.

[rebelmouse-image 27087122 alt="""" original_size="499x333" expand=1]

Photo: Thinh H

"By its very definition, you don’t see a pocket knife — it’s in your pocket," Elsener says wryly. Shortly before 9/11, Victorinox had launched a line of leisure wear, and after the 2005 take-over of its competitor Wenger, which also makes Swiss knives, Victorinox introduced a fragrance line too.

Victorinox also overcame that turbulent period by having embraced virtues over the years that may sound old-fashioned today — "saving for a rainy day," for example. "We always had reserves," Elsener says. The company is now on a path of what he characterizes as "organic" growth. "We don’t want to soar up like a rocket because what goes up fast comes down fast," the CEO says. The current economic crisis has brought the company’s workers and management together.

But perhaps the greatest reason for Victorinox’s success is its unique structure. The Elsener family has long since given up all ownership. Ninety percent of the shares are in a company foundation with the remaining 10% of the capital invested in a charity foundation. Profits down to the last cent are reinvested in the company.

Given those circumstances, it’s no surprise that Elsener offers an sympathetic smile at talk of all the radical attempts to keep executive remuneration in the United States and Europe in check. He is paid only about six times the salary of the lowest-wage worker in the company.

"This isn’t some kind of adaptation to current trends. It was always like that here," he says. "Company management shouldn’t be so self-important." And they should also never be without their "faithful companion" — even if it is only to open a bottle of wine, should the occasion arise.

You've reached your limit of free articles.

To read the full story, start your free trial today.

Get unlimited access. Cancel anytime.

Exclusive coverage from the world's top sources, in English for the first time.

Insights from the widest range of perspectives, languages and countries.

Economy

Lex Tusk? How Poland’s Controversial "Russian Influence" Law Will Subvert Democracy

Since creating a controversial commission against "Russian influence", Polish President Andrzej Duda has faced criticism from the United States and the European Union. Duda has since offered to make several changes to the law, but several experts in Brussels remain unconvinced that the law will not become a witch hunt ahead of the upcoming elections.

Photo of President of the Republic of Poland Andrzej Duda

Polish President Andrzej Duda

Piotr Miaczynski, Leszek Kostrzewski

This story was updated on June 8, 2023 at 1:30 p.m. local time

-Analysis-

WARSAW — Poland’s new Commission for investigating Russian influence, which President Andrzej Duda signed into law last week, will be able to summon representatives of any company for inquiry. It has sparked a major controversy in Polish politics, as political opponents of the government warn that the Commission has been given near absolute power to investigate and punish any citizen, business or organization.

And opposition politicians are expected to be high on the list of would-be suspects, starting with Donald Tusk, who is challenging the ruling PiS government to return to the presidency next fall. For that reason, it has been sardonically dubbed: Lex Tusk.

On Wednesday, the European Commission launched legal action against Poland over the highly controversial law. Brussels fears the law could be used to target opposition politicians in the run-up to Poland's general election, which takes place later this year.

Indeed, University of Warsaw law professor Michal Romanowski notes that the interests of any firm can be considered favorable to Russia. “These are instruments which the likes of Putin and Orban would not be ashamed of," Romanowski said.

The law on the Commission for examining Russian influences has "atomic" prerogatives sewn into it. Nine members of the Commission with the rank of secretary of state will be able to summon virtually anyone, with the powers of severe punishment.

Under the new law, these Commissioners will become arbiters of nearly absolute power, and will be able to use the resources of nearly any organ of the state, including the secret services, in order to demand access to every available document. They will be able to prosecute people for acts which were not prohibited at the time they were committed.

Their prerogatives are broader than that of the President or the Prime Minister, wider than those of any court. And there is virtually no oversight over their actions.

Nobody can feel safe. This includes companies, their management, lawyers, journalists, and trade unionists.

Keep reading...Show less

You've reached your limit of free articles.

To read the full story, start your free trial today.

Get unlimited access. Cancel anytime.

Exclusive coverage from the world's top sources, in English for the first time.

Insights from the widest range of perspectives, languages and countries.

Already a subscriber? Log in.

You've reach your limit of free articles.

Get unlimited access to Worldcrunch

You can cancel anytime.

SUBSCRIBERS BENEFITS

Ad-free experience NEW

Exclusive international news coverage

Access to Worldcrunch archives

Monthly Access

30-day free trial, then $2.90 per month.

Annual Access BEST VALUE

$19.90 per year, save $14.90 compared to monthly billing.save $14.90.

Subscribe to Worldcrunch

The latest