- More than 36 of Germany's industrial kingpins, including auto suppliers Continental AG (OTC:CTTAY) and Bosch, industrial firms Basf SE (OTC:BFFAF), and Siemens AG (OTC: SIEGY), have agreed to conform to redundancies at one firm and vacancies at another, training workers to move directly from job to job, Reuters reports.
- The companies looked to team up to retrain workers in software and logistics to fill a growing skills gap and avoid layoffs among workers of all ages as the economy shifts to clean energy and online shopping.
- The companies will share the costs of the initiative on a case-by-case basis.
- Germany's unemployment cost the economy €63 billion ($68 billion) in 2020.
- A study warned that Germany could lose 100,000 jobs linked to the internal combustion engine by 2025 if carmakers failed to transition fast to electric vehicles and retrain workers.
- Germany's number of open vacancies surged from 0.32 million in 2009 to 0.85 million in March 2022.
- Overseas companies like Tesla Inc (NASDAQ:TSLA) helped meet the demand for skilled workers. Tesla decided to build its European electric vehicle and battery plant in Brandenburg, looking to create 12,000 new jobs.
- Tesla's move will ramp up competition for skilled workers with rival carmakers Mercedes-Benz Group AG (OTC:DMLRY) and Volkswagen AG (OTC:VWAGY).
- Mercedes saw eagerness among younger workers willing to become more resilient by gaining new skills. In contrast, older workers opted to retire early.
- Germany's new coalition government looked to assist workers from abroad by enabling dual citizenship and improving access to apprenticeships.
