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Nearly half of Ford’s European job cuts will be in Germany

US carmaker Ford said Thursday that it plans to slash a total of 12,000 jobs across Europe as part of a previously-announced restructuring.

Published: 27 June 2019 15:00 CEST

Nearly half of Ford's European job cuts will be in Germany

An employee at the Ford plant in Cologne. Photo: DPA

That means nearly half – 5,400 – of the planned job cuts by the car manufacturer are in Germany.

Ford builds a large proportion of its cars for Europe in Germany where it employs around 24,000 people. At its headquarters in Cologne around 18,000 people are employed.

The firm said it plans to close or sell six plants in Britain, France, Russia and Slovakia in 2019 and 2020.

“Ford's manufacturing footprint in Europe will be reduced to a proposed 17 facilities by the end of 2020, from 24 at the beginning of 2019,” the group said. A total of 1,700 jobs are being slashed in Wales.

The announcement on Thursday is the first time Ford has publicly stated the jobs impact of its plans.

READ ALSO: Ford to slash over 5,000 jobs in Germany

'First step towards sale'

The move has raised concerns over the future of Ford in Europe.

“This could be the first step towards a complete or partial sale” of Ford's car business in Europe, industry expert Ferdinand Dudenhöffer of the University of Duisburg-Essen's CAR institute said.

The job cuts will come “primarily through voluntary separation programmes”, said Ford, which employs around 51,000 people and operates 24 factories around Europe.

As well as the factory closure in Wales, three sites in Russia, one in Slovakia and one in France will be shuttered.

Group chief executive Jim Hackett announced last autumn a massive restructuring of the American firm, aiming to save $11 billion and turn Ford into a more “agile” group with faster decision-making processes.

The company aims to catch up with the world leaders in the industry's transformation towards autonomous and electric-powered driving, as well as services like car-sharing and ride-sharing.

Ford says that “financial results in Europe are on track to significantly improve for full year 2019”, adding that in future it will refocus on electric mobility.

Its European operations will be reorganized into three divisions: commercial vehicles, passenger vehicles, and imports.

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Germany or Austria: Where is it easier to get an EU Blue Card?

Though obvious friends with a deeply linked history, Germany and Austria are competing against each other in the global race for skilled workers. Germany needs as many as 400,000 new skilled workers a year to plug its labour market gap. There are over 100,000 vacancies in Austria – a country of just nine million people.

What eligibility rules for an EU Blue Card are there in each country?

In Germany, nationals from countries that need a visa to enter, which includes most non-EU countries, first need to apply for a visa that will allow them to take up gainful employment – which could include a jobseeker’s visa.

After that, they can make an appointment at their local immigration office to obtain an EU Blue Card. If someone is a national of a country that doesn’t need a visa to enter Germany, such as an EU/EFTA state or a handful of non-EU countries like the USA, Canada, Japan and the UK, they can apply for their EU Blue Card after arriving in Germany.

For many EU Blue Card applicants in Germany, they’ll need to have:

A university degree linked to their job
A job offer with a proposed salary of at least €56,400 a year

However, the salary requirement drops to €43,992 annually if the applicant is filling a job in a profession experiencing a particular shortage in Germany. These include doctors, engineers, IT specialists, mathematicians and natural scientists.

A key factor here is whether someone looking to get an EU Blue Card is a national of a country that needs a jobseeker visa to enter Germany in the first place. People from these countries (which includes most non-EU countries) may have a slightly tougher time. That’s because, in addition to fulfilling the requirements of an EU Blue Card, they’ll need to have a few extra things to get the German jobseeker visa. These are:

proof of German language skills (typically B1 level)
proof of ability to pay living costs

Additionally, people older than 45 and coming to Germany for the first time on a work visa need an offer with an annual salary of at least €46,530.

The German city of Munich.

The German city of Munich. Photo by ian kelsall on Unsplash

Another thing to keep in mind is that the German government is currently trying to push through a reform of the immigration laws, which aims to make it easier for skilled workers from abroad to enter the country. As part of this reform, the rules for IT professionals are set to be relaxed so that people with career experience or skills can be accepted for a Blue Card without a university degree.

READ ALSO: What’s in Germany’s new draft law on skilled immigration?

By contrast, as things stand at the moment, Austria’s EU Blue Card salary requirements are slightly easier, even if other factors remain the same. You can also apply for it at an Austrian mission abroad before arriving. You’re eligible for an EU Blue Card in Austria if:

You have a university degree which matches your job OR
If applying to the IT industry, you have three years of relevant experience, as long as you’ve earned those in the last seven years.
A job offer with a proposed gross salary of at least €45,595 a year

So, Austria’s overall annual salary requirement is more than €10,000 lower than Germany’s – unless the applicant is in a skilled profession the German labour market is particularly short of. In that case, their salary requirement for an EU Blue Card in Germany is around €1,500 less than in Austria – but only for those professions.

READ ALSO: How Austria is making it easier for non-EU workers to get residence permits

However, one key factor in Austria is that the company offering the job needs to prove that there are currently no Austrian residents unemployed and registered with the employment agency AMS that could fit that particular position.

According to the Austrian authorities, one of the main requirements is that “the labour market test (Arbeitsmarktprüfung) shows that there is no equally qualified worker registered as a jobseeker with the Public Employment Service (AMS) available for the job.” This could be particularly tricky to prove.

What privileges exist for those are already hold an EU Blue Card?

Other than the obvious right to live and work in the country for at least two years, EU Blue Card holders in Germany are typically eligible for permanent residence much earlier than normal.

While a regular applicant is eligible after at least five years in Germany, EU Blue Card holders can apply for permanent residency after 33 months – or just under three years. Blue Card holders who demonstrate good German language skills – such as by passing a certified language test – can get permanent residence after 21 months, or just under two years in Germany.

EU Blue Card holders in Austria can apply to stay longer than two years with another special card – the Red-White-Red Card Plus. Germany, by contrast, makes permanent residence available quickly. (Photo by Pixabay / Pexels)

After 21 months of working in Austria under an EU Blue Card, you can apply for a Red-White-Red Card Plus. This card gives you unlimited access to the Austrian labour market and the right to stay with similar conditions to those enjoyed by permanent residency holders in Germany. However, it runs out in Austria after a year.

After two years of legal residence in Austria and completion of an integration module, you can get a Red-White-Red Card Plus that’s valid for three years. It takes people five years of residence in Austria to qualify for permanent residency, so a Blue Card and then a Red-White-Red Card Plus can potentially give someone a path to permanent residency in Austria. However, the path requires more bureaucratic steps than in Germany.

The eligibility versus rewards trade-off

Ultimately, an EU Blue Card is a bit harder to get in Germany than in Austria for non-EU skilled workers in most professions, when it comes to the minimum salary requirement being higher. However, Austrian companies need to prove that a candidate offers something no other unemployed person in Austria can offer.

That said, those who do get the EU Blue Card in Germany have an easier, more guaranteed path to permanent residence in Germany, much sooner than in Austria.

We should note though, that both countries have other types of work visas for people who don’t qualify for the EU Blue Card.

READ ALSO: How to apply for Germany’s new ‘opportunity card’ and other visas for job seekers

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