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SPD buries hatchet over pension age hike policy

The two top Social Democrats, chairman Sigmar Gabriel and parliamentary leader Frank-Walter Steinmeier, have reached a compromise after months of battling over the question of raising the retirement age, media reported Wednesday.

SPD buries hatchet over pension age hike policy
Gabriel on the left, Steinmeier on the right. Photo: DPA

The agreement came as a poll revealed strong opposition to a pension age hike, with just 7 percent of Germans saying they were happy to retire at the age of 67, and most saying they actually wanted the age lowered.

Daily Bild reported Wednesday Gabriel and Steinmeier had agreed that their policy should include an incremental increase in the retirement age beginning in 2015 at the earliest, not 2012 as planned by Chancellor Angela Merkel’s centre-right coalition.

The centre-left Social Democrats (SPD) would also want the year 2029 to remain the date by which the full increase needed to be implemented – the same as the original plan.

The issue had become a thorn in the side for opposition party, which agreed to a rise in the retirement age when it was part of the former “grand coalition” government with the conservative Christian Democrats, but has since had doubts.

The pension age is a pivotal issue for a country with an ageing population and a sinking ratio of workers to retirees, but remains a politically sensitive subject for the left side of politics. The SPD was essentially torn apart five years ago after many members, disaffected by the then leadership’s embrace of a pension age increase, defected and joined the socialist Left party.

Gabriel and Steinmeier plan to put forward their compromise plan to the party leadership this Sunday and then to the full party conference in September.

Gabriel has lately spoken out in favour of deferring the planned increase in the pension age on the grounds that the job market is not strong enough to support more workers in the autumn of their careers. He has argued it should be put off until policymakers can be sure a large share of elderly people can actually find work.

Steinmeier, on the other hand, has emphasized the need for people to work longer, and defended the grand coalition’s original blueprint. SPD vice chairman and Berlin mayor Klaus Wowereit, meanwhile, called for complete renunciation of lifting the pension age from 65 to 67.

Polls show the public to be firmly against an increase. A survey published in Stern magazine showed just 7 percent of voters want the age raised to 67.

Some 38 percent wanted to kept at 65, but even more people wanted to see it lowered. Some 21 percent said it should be lowered to 62 and 24 percent thought 60 was a good age to set retirement.

The environmentalist Greens parliamentary leader, Renate Künast, said she continued to support the plan to raise the pension age starting in 2012.

“I don’t want to change anything about the increase, because generational justice is very important to me,” she told the Kölner Stadt-Anzeiger. “We are well advised to the stick to this moderate time frame.”

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WORKING IN GERMANY

Which Bavaria-based companies regularly hire English speakers?

Bavaria is no doubt a beautiful state with a strong economy, but can be a hard place for non-German speakers to integrate. The Local takes a look at job opportunities in Germany’s southeastern 'Free State.'

Which Bavaria-based companies regularly hire English speakers?

Munich ranks third in German cities with the highest total GDP, behind Berlin and Hamburg, but in terms of GDP per capita, it’s higher than both of them.

It also consistently ranks high, often highest, in terms of average household income.

As of 2023, nine of the 40 companies listed on DAX, Germany’s stock index, were based in Bavaria. Seven of those are based specifically in Munich.

While Frankfurt is commonly known to be Germany’s business capital, Munich can claim the title of Germany’s insurance capital, which is saying something, as Germany is home to some of the largest insurance firms in the world, like Allianz.

Beyond the state’s capital city, a number of international companies are based elsewhere in Bavaria, particularly in the Franken region, near Nuremberg.

Which companies actively hire English speakers?

Bavaria, and Munich in particular, is home to a number of companies at the forefront of international business. But the state is known for its traditional, sometimes conservative, culture, which affects its business culture as well.

Whereas companies embracing English as their primary business language are easy to find in Berlin, the practice is less common in the south. That said, there are some notable exceptions. 

Sportswear giants, Adidas and Puma, both have their headquarters near Nuremberg in Herzogenaurach, and regularly recruit English speaking international talent.

“As an international company, our teams reflect the rich diversity of our consumers and communities,” Jon Greenhalgh, Senior Manager Media Relations for Adidas told The Local. “Fostering a culture of inclusion where we value and leverage differences, ensures that we can authentically engage with our employees and truly connect with our consumers.”

He added that around 40 per cent of Adidas’ Germany-based employees are foreign nationals, from over 100 different countries.

Siemens and BMW rank among Bavaria’s top employers, and are also known to hire their fair share of foreigners.

“In Germany, we recently had around 2,000 open positions,” Konstanze Somborn told The Local on behalf of Siemens AG.

He added that Siemens operates in 190 countries. “That is why we value international teams very much…English as a common language is very usual.”

READ ALSO: ‘Which German companies want to hire foreigners?’

Similarly, BMW hires workers from a variety of backgrounds. 

“Every year, we hire lots of internationals and welcome them to the BMW Group,” Dr. Hans-Peter Ketterl, a press spokesman for BMW Group told The Local. 

But not all of these positions are available to non-German speakers.

Ketterl added that BMW’s working language is German in the country, even though, “English is an indispensable entry requirement as the second corporate language in many areas of the company.”

Check job boards and follow best practices

If it’s your first time applying for jobs in Germany, make sure to change your resume to the German format, even for English positions.

While Germany is home to its own job boards, like Xing, LinkedIn is probably the best place to start. In addition to searching for positions based in your preferred location, you can check relevant groups, like Munich Startups, to broaden your horizons.

The English Jobs in Germany website is also a good resource to start with. 

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