BMW and its German works council have agreed a package of personnel measures which offers early retirement severance packages, longer holidays and reduced contract hours.
The automaker said the move “balances the future competitiveness of the company with the interests of the workforce”.
Go deeper with GlobalData
The new package consists of four measures affecting mainly Germany.
Capacity will be adjusted by reducing employment contracts with extended weekly working hours for exempt employees – so-called ’40-hour contracts’ – to 38 hours.
Another option would allow eligible employees to take an additional six to eight days of leave instead of the supplementary pay-scale payment ‘T-ZUG’ to give workers greater flexibility.
As already announced, BMW will take advantage of attrition to reduce the workforce.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataSeverance packages will allow employees close to retirement age to retire early – as an alternative to pre-retirement with part-time working arrangements.
An educational programme will allow young people under the age of 25 to enhance their skills by earning a degree in a relevant area of expertise.
The group will provide financial support for external full-time qualification and guarantee re-employment upon completion.
“By the end of the year, total employee numbers should therefore be slightly lower than in 2019,” BMW said.
BMW had already reduced working time and leave account balances, and permitted short-time working but said further steps were needed “to make the group more resilient to external influences and market fluctuations”.
“The objective is for the company to achieve planned workforce reductions through attrition and voluntary agreements and maintain the same high level of vocational training as last year.”
“We have agreed on a forward looking package of measures that will help improve the company’s earnings in the short term, but will also preserve our capacity for innovation in the long term,” said HR and labour relations chief Ilka Horstmeier.
This year and next, 1,200 apprentices will again be hired in Germany alone to meet future needs for skilled employees.
Apprentices will work at group plants and the Munich headquarters after completing their training.
