Glencore and the 10 million Switzerland question

With rumours of a relocation of the company, and a fateful referendum looming, Glencore's connection to the canton of Zug seems more fragile than ever. But the Annual General Meeting at the Theatre Casino Zug nevertheless unfolded according to a familiar script.
 

A slice of Zug normality prevailed around the Theatre Casino last Thursday midday: in front of the building, the Voices aus Bern NGO presented a “visual action” in connection with the upcoming Annual General Meeting of the commodities giant Glencore. With a poster and an installation, the NGO drew attention to the risk of a dam collapse at a bauxite mine in the Amazon. Glencore holds a 45% stake in the mining company that owns the mine. Some police officers observe the proceedings from a distance,, although it wasn’t entirely clear whether the hedge served as a hiding place or a source of shade.

There was also a heavy security presence in the entrance area. Those who passed the security check were admitted to the air-conditioned Festsaal (ballroom), where a promotional video was playing on a screen. It focused on Glencore's involvement in the Democratic Republic of Congo (which is also the subject of criticism), on "solutions," the "community," and the "environment." The subsequent speeches by Chairman Kalidas Madhavpeddi and CEO Gary Nagle repeatedly revolved around safe working conditions and employee protection. The number of work-related deaths in Glencore has decreased; there were two in 2025 (compared to four in 2024).

Image cultivation inside, criticism outside: the usual scenario at a Glencore AGM. And yet this year is different, as Glencore's ties to the canton of Zug appear to be more fragile than ever.

The concerns of the cantonal councillor
Firstly, there's the recent past: back in January, it was thought that the British-Australian mining company Rio Tinto would take over the Baar-based multinational Glencore, which would have significantly increased the likelihood of Glencore leaving the canton of Zug. The talks failed due to the issue of power sharing: Rio Tinto wanted key positions in the combined company, which Glencore disagreed with.

But the relocation scenario isn't entirely off the table, however: there's also the looming "No 10-million Switzerland” referendum in the near future. What would the consequences be for a company like Glencore if the "sustainability initiative" of the Swiss People's Party's (SVP) is accepted on the 14th June?

When asked, Zug's Director of Economic Affairs, Silvia Thalmann-Gut (Mitte party) declined to comment on this in detail. The political factions of the Swiss People's Party (SVP) and the Social Democratic Party (SP) in the cantonal council (Kantonsrat) have submitted interpellations on the topic, which the cantonal government (Regierungsrat) has yet to answer.

But the government councillor did say that "The skilled worker argument is particularly important for larger companies." And that the strength of the canton of Zug in the competition for business locations lies primarily in its "brain power," meaning that companies can find the sought-after skilled workers within the canton. "I would have concerns if there were to be any restrictions in this area," said Silvia Thalmann-Gut, who remains a staunch opponent of the SVP initiative, unlike her fellow government councillor Heinz Tännler (SVP).

Protesters at the front, businessmen in suits in the back: The Glencore Annual General Meeting on Thursday in front of the Theater Casino provided familiar scenes.         Photo: Matthias Jurt

Anchored in the community
Glencore is perhaps the best-known international company with headquarters in the canton of Zug. And as such, it’s right in the middle of the debate surrounding the "No 10 Million Switzerland" initiative.

With 1,304 employees, the company was the fourth-largest employer in the canton last year. According to its own statements, Glencore's workforce comprises 60 different nationalities. The percentage of foreign nationals among its Zug-based employees is unknown, but it’s certain that high-earning executives, such as CEO Gary Nagle, reside in the canton of Zug. As with the company itself, the attractive tax situation is likely a key factor in their decision to locate here - and the company and its executives are, in turn, significant taxpayers for the canton. According to media reports, Glencore paid approximately CHF 448.3 million to Swiss tax authorities in 2021, although the Canton of Zug does not disclose the percentage of these payments.

Glencore is certainly representative of the "Zug model," a business-friendly policy that explicitly aims to make the canton attractive to international companies with their affluent workforces. Philip C. Brunner, president of the Zug branch of the Swiss People's Party (SVP), once described the company as a "pillar of Zug's economy."

Glencore does not detach itself from the everyday lives of the residents of the canton of Zug. On the contrary, Glencore is actively involved in civic life, for example, as the main sponsor of the EVZ ice hockey team, and also supports smaller clubs and events, such as the Baar Räbenfastnacht (carnival). And when criticism of Glencore arose from the audience at the recent "Zug Business Day," the co-organiser of the "Zug Magic" water light show rallied to support the company. The company thereby certainly has its advocates in the canton of Zug.

When asked about the SVP's initiative, however, the company, which is generally perceived as large, important, and powerful, declined to comment.

Small shareholders support initiative
The June 14th referendum was not officially addressed at Thursday's AGM. During the Q&A session, shareholders from Colombia and Australia, in particular, presented their critical views. They were the heads of local companies or unions, and had travelled from abroad specifically for the AGM. The discussion focused on collective bargaining and equal rights issues. Anna Lessing, managing director of Voices (who herself owns Glencore shares), also spoke up, asking what Glencore had done and would do to ensure safety at the bauxite mine in Brazil. The Glencore chairman of the board referred, among other things, to the "detailed reports" that exist for every dam, and stated succinctly that Glencore submits "ideas" to the relevant bodies.

At the subsequent standing lunch, it became clear that many of the small shareholders from Switzerland had considered the "10 Million Switzerland" initiative. The surprising conclusion: a majority of those present supported the proposal, even though, as some admitted, this position was probably not in the interest of Glencore. But, amongst those interviewed by the Zuger Zeitung newspaper, the shareholders from Zug didn’t believe that the company would abandon its Zug location if the proposal is passed.

They emphasised the advantages of the canton, with their lunch plates in hand and Lake Zug shimmering in the sun behind them. Just normal life in Zug , therefore.