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Mixed feelings as labour market expands

Politicians, labour representatives and employers are looking towards next weekend with varied feelings as the date approaches when people from eight new EU member countries will have the right to work in Germany.

Mixed feelings as labour market expands
Photo: DPA

As of May 1, people from Poland, the Czech Republic, Estonia, Lithuania, Latvia, Slovakia, Hungary and Slovenia, will have the same rights to work in Germany as people from other European Union countries. Until now they have needed a work permit.

This should be regarded as a positive development, according to Gunter Pleuger, president of the Viadrina Europe University in Frankfurt an der Oder – as well as Brandenburg’s state premier Matthias Platzeck.

But trade union Verdi warned that wages could face downward pressure as workers willing to take low pay could distort the German labour market.

Pleuger said May 1 could further the cause of German-Polish integration. He said the German economy needed well-educated and well-trained workers and these could be found in Poland. He said the German-Polish border regions in particular would benefit from the liberalised labour laws.

Platzeck said that if his state could offer attractive working conditions and wages, “we will get expert workers and will be able to reduce our lack of experts with the help of immigration.”

He said he took the fears of some Germans seriously. “Some fear too much immigration. All experience to date would suggest these fears are unfounded,” he said.

The director of the Institute for Labour Market and Careers Research (IAB) Joachim Möller said he also saw the development positively.

“The fear that opening up the labour market for citizens of the new EU member states could lead to low wages in a broad fashion is something I do not share,” he said.

He said this was based on the fact that German minimum standards would apply to those incoming workers as well as for Germans. But he did say he was sceptical on the effects of those with low qualifications, saying they could affected by competition from Eastern Europe.

Labour Minister Ursula von der Leyen told the Frankfurter Allgemeine Zeitung on Sunday she was convinced, “that the workers from the new EU states will help our economic development.”

And Employers’ Association president Dieter Hundt said he welcomed workers from abroad, adding that certain technical posts were crying out to be filled.

Yet Frank Bsirske, head of Verdi said he feared pressure on wages. This threatened, “a downwards spiral in which companies which employ labour from Eastern and Central Europe push out those who pay better wages and offer more social working conditions.”

The number of people who might come to Germany each year thanks to the liberalised work laws remains contested. Von der Leyen and the IAB reckon with 100,000 people per year while Frank-Jürgen Weise, head of the Federal Labour Agency (BA) said he expected up to 140,000 to come.

DAPD/hc

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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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