25 May 2010
Germany / Labor Market
Employment agency wants to cut down 20.000 jobs
Until 2014, Germany’s biggest agency, “the Federal Employment Agency”, wants to make redundant more than every sixth employee. Operational announcements are not intended, it’s rather a question of not extending temporary contracts, which are going to run out in 2012 and 2013. Consequences of the economic and financial crisis are putting a considerable strain on the Employment Agency. They expect a deficit of more than 30 Million EUR by the year 2014. The intended reduction in personnel is mainly based on cyclical assumptions. Should the economy – as anticipated by the government – grow by more than 1.5% a reduction of unemployment to 3.2 million is expected. Consequently the demand for personnel would decline as well.
Frankfurter Allgemeine Zeitung, 25 May 2010, No. 117, p.11
Germany / Labor Market
Opel reached agreement with Works Council on billions savings package
Following month long negotiations Opel’s top management, the Works Council and the Labor Union have agreed upon a restructuring plan. In order to support the recapitalization plan Opel’s employees are going to waive 1.3 Billion Euros. Now, finally the last formal precondition for obtaining a most controversial billion-Euro-guarantee from the government is met. As a countermove to the sacrifices in wages, Opel’s Chief Executive Reilly promised tangible investments that would contribute to sustaining the endangered jobs at the business locations of Bochum and Eisenach. Furthermore the company will be transformed from a GmbH into a new legal form, an AG. This is a concession to the employees as in an AG the American mother company, General Motors, will not be able to exercise such a direct influence that it is currently having.
Frankfurter Allgemeine Zeitung, 25 May, No. 117, p.15
18 May 2010
Germany/Job Market
Sanofi Aventis puts its hope into Frankfurt as business location
The French pharmaceutical company Sanofi-Aventis has high expectations for its newly founded diabetes division in Frankfurt. The patent expiry in 2017 for the diabetes medication “Lantus”, which is being produced in Frankfurt-Höchst and generates the highest turnover within the company, will definitely be a challenge. Nonetheless, the company is expecting to balance the impending loss in turnover with new products. This would ultimately even strengthen the business location Frankfurt-Höchst.
Prospects to keep the size of the “Lantus” work force stable until 2020 are good despite of competition from the generic industry, as the imitation of biotec pharmaceuticals such as “Lantus” is much more complex than the imitation of chemically produced medication.
Frankfurter Allgemeine Zeitung, 18 Mai 2010, No. 113, page 16
17 May 2010
Germany / Equal Opportunities
Women knock at the door of Executive Management
German companies have realized that there are too many males in key management positions and as a general rule they are “too German” as well. This is to be changed. The buzz word is “diversity”. Progress has been made lately in this respect. E.ON has appointed Regine Stachelhaus, 55, as member of the supervisory board. Siemens has increased the quota of women on the supervisory board by appointing 54-year-old Brigitte Ederer. Up to that point Barbara Kux Platz, member of the Siemens supervisory board since 2008, had been the only female member of a supervisory board of a German company listed in the DAX.
Companies like Deutsche Telekom or E.ON are trying to fight this deficit with the implementation of a women quota. Telekom’s ambitious goal is to reach 30% by 2015 while E.ON wants to reach 10% by 2012. Other companies are saying that while they do recognize an economic imperative to open career opportunities for women they want to restrain from putting up quotas and decide strictly according to the qualification of the prospective candidate.
Frankfurter Allgemeine Zeitung, 15 May 2010, No. 111, page 13
05 May 2010
Germany / Labor Market
Economy intensifies training for employees to fight the lack of skilled personnel
Despite of the economic crisis many companies are investing more in extended vocational training. A study prognosticates already for 2015 a lack in human resources of up to three million. In the medium term every second company will secure skilled personnel through vocational training. However, companies are seeking perfectly fitting and financially attractive offers. Often, public monies can only be secured going through high bureaucratic hurdles, which is especially true for monies from the European Social Fund.
Handelsblatt, 05 Mai 2010, No. 85, page 15
Germany / Data Protection
Serious Data Protection Scandals
The economy excoriates increasing bureaucracy in connection with data protection and demands to keep an eye on the cost-benefit relation. In particular, many companies believe that the planned stepping up in data protection for employees as well as plans for “data letters” are going too far.
Government officials and Commissioner for Data Protection Peter Schaar are discussing the effects of these plans with representatives of the economy at the Data Protection Conference 2010.
Data protection scandals, for example at German Telekom or Lidl, triggered a government bill that calls for “data letters”, which show exactly what kind of personal information is being kept. Furthermore, the possibilities of employers to order health check-ups for employees will be restricted, while access of employers to work related e-mails will be facilitated in order to fight corruption.
Handelsblatt, 05 May 2010, No. 85, page 20
13 April 2010
Job Market
SAP guarantees R&D jobs until 2014
Some thousands of employees of the software company SAP have gotten a job guarantee despite of declining profits. The reason for this was a restructuring of the development department aimed at streamlining the work flow. With this agreement the management wants to send a clear signal to the approximately 5000 employees affected by these measures.
Frankfurter Allgemeine Zeitung, No. 84, Monday, 12 April 2010, p.17
Economy
France needs mid-tier business resembling Germany’s
The French economic council „Conseil d’analyse économique” (CAE) has made out the structure of the French business landscape as a main reason for the country’s weak economy, saying that the absence of small and medium-sized businesses causes various problems such as unemployment and low investment. Furthermore the financial crisis has shown that small businesses are more committed to keeping their employees.
This undesirable development is seen as a result of France’s centralistic organizational structure. During a modernization period following 1945 the focus was on creating large scale businesses and on the centralization of processes. In contrast to that Germany’s federalist system is described as always having favoured the development of mid-tier business creating an entrepreneurial spirit in the process that lead to more people daring to start their own business.
Handelsblatt, No. 70, Tuesday, 13 April 2010, p.31
Environment
China is doubling wind power
China has replaced Germany as the second largest producer of wind energy. The Global Wind Energy Council (GWEC) in Brussels is reporting that by doubling its production China is now trailing only the USA that are producing approximately thirty-five gigawatt.
Frankfurter Allgemeine Zeitung, No. 85, Tuesday, 13 April 2010, p.10
Financial Crisis
Deutschlandfonds – Billions of Euros waiting to be spent
The Deutschlandfonds for the rescue of businesses in need has only been used up slightly. Approximately 12000 businesses have applied for credits and guarantees adding up to a volume of about 11 billion Euros, the equivalent of 10% of withdrawable money. This program has contributed to saving some 130000 jobs. Chambers of commerce, banks and credit institutions are rating the Fonds mostly positively. Still the level of awareness of the program needs to be raised and the application process has to be simplified, as a secretary in the Department of Economy points out.
Sueddeutsche Zeitung, No. 84, Tuesday, 13 April 2010, p.17