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German arms maker to hire workers from ailing auto firm

German weapons manufacturer Rheinmetall, whose business has boomed amid the Ukraine war, is set to hire workers from Continental as the auto supplier cuts thousands of jobs, the companies said on Friday.

Published: 14 June 2024 12:18 CEST

Cyclist drives past an advertisement at the headquarters of German weapons producer and automotive supplier Rheinmetall. Photo by Ina FASSBENDER / AFP

The defence group Rheinmetall has seen demand soar as countries rush to re-arm following Russia’s invasion of Ukraine.

It is setting up new factories and said in March it was targeting a record €10 billion in sales this year.

In contrast Continental, which makes tyres and supplies car components, is in the process of cutting over 7,000 jobs worldwide as it faces intense competition and the tricky switch to electric vehicles.

The companies said they had inked an agreement “to partly cover Rheinmetall’s fast-growing personnel requirements in the coming years with Continental employees affected by the transformation” in the auto sector.

As a first step, up to 100 employees from Continental’s Gifhorn plant in northern Germany, which is set to close in 2027, will get jobs with Rheinmetall at a nearby site, they said.

Events will be organised at other sites in Germany at which staff can find out about career opportunities at Rheinmetall.

Rheinmetall is the third company that Continental has signed up to its initiative to help staff find new jobs.

“The profound changes in all industries can only be tackled together,” said Continental human resources boss Ariane Reinhart.

Peter Sebastian Krause, who oversees human resources at Rheinmetall, said Continental was an “excellent match” for the defence group.

Rheinmetall is expecting sales growth of up to 40 percent in the current financial year. Soaring demand means the company needs to hire staff quickly, at a time when Germany is suffering from shortages of skilled labour.

In a country still haunted by post-War War II guilt, Germany’s weapons manufacturers were for years not the most celebrated firms.

Europe’s top economy preferred to highlight its well-known carmakers or industrial giants.

That has started changing since Russia invaded Ukraine in 2022, as demand for military equipment boosts the arms industry’s fortunes.

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Five ways working in Germany is better than employment in the US

Here’s a look at five positive things about working in Germany, as compared to working in the US:

Significant paid sick leave time

One thing workers in Germany almost never need to worry about: needing to take time off for illness, even in the longer term.

In the Bundesrepublik, employers are mandated to cover up to six weeks of fully paid sick leave – so long as you have been working for your employer for at least four weeks – for both full or part-time workers.

For particularly severe or long-term cases, if a doctor advises that you need even more time to recover, you can take further leave from work – up to 78 weeks of leave within a three year period for a given illness.

During this time you are entitled to 70% of your gross monthly salary (or 90% of your take home pay, whichever is lower), in the form of Krankengeld (sick pay) that is covered by your health insurance provider.

This benefit is also extended to workers who suffer from acute cases of depression or burnout. In fact these are common reasons for extended sick leave from work in Germany.

In contrast, in the US there are no sweeping federal legal requirements for paid sick leave. Companies that are subjected to the Family and Medical Leave Act (FMLA) may be required to provide up to 12 weeks of unpaid leave for certain medical issues.

Generally in the US, employers can determine their own sick leave and paid time off (PTO) benefits. Employees can try to negotiate these when signing an employment contract, but to get as much paid sick leave as the basic German requirements would be unheard of.

nurse in a hospital

Workers in Germany are entitled to at least 30 paid days of sick leave for a given illness, and can generally call out of work for medical appointments as needed. Photo by JESHOOTS.COM on Unsplash

Health insurance isn’t dependent on employment

Health insurance is mandatory for all residents in Germany, including foreign nationals – hence needing to select either a public or private insurance plan that satisfies basic requirements before applying for a residency visa.

For people coming from the US, being forced to pay for statutory health coverage may at first feel like an annoying obligation. But ultimately the German system ensures that no one is stuck with a medical bill they can’t afford.

For most regularly contracted workers (that is full- or part-time employees), your health insurance contribution is deducted from your pay. But because your insurance isn’t strictly dependent on your employer, you never need to worry about facing a loss of coverage if your employment changes.

A health care horror story that is commonly heard in the US goes something like: a person lost their health insurance when they changed jobs and then they had a medical emergency and were stuck with tens of thousands of dollars in medical bills.

In fact, stories like this have become so common in the US that crowdfunding sites like GoFundMe have been inundated with campaigns for people trying to pay-off their medical bills.

But beyond the hefty bills themselves are a whole slew of knock-on effects that can force people into spiralling debts and lost opportunity – all for a health issue that would have been freely treated in Germany in most cases regardless of one’s employment situation.

Take, for example, the case of an American nurse who was diagnosed with epilepsy at 30. In the American system she was let go from her job when she wasn’t immediately able to return to work (whereas in Germany she would have had a significantly better paid leave option, as mentioned above.)

After losing her job, and therefore also her health insurance coverage, medical debts began piling up – in addition to student loans that she could no longer pay off. When she spoke to the New York Times about her story, she had recovered her health enough to work but could not return to nursing due to economic sanctions against her related to the debts that had piled up.

Layoffs are not easy for employers

Sometimes people talk as if no one can be fired in Germany, which is not really true. But it is true that, as a worker, after you’ve passed your initial probation period, your employer can’t just easily fire you for any reason. They would need to justify the firing with a legally valid reason.

An ordinary termination can be carried out when contractual regulations are not met, for example. In this case the employer needs to observe a legally mandated notice period.

An extraordinary dismissal can occur without notice, but requires a legally valid reason, like if the company is restructuring, or if there is an issue with the employee’s conduct.

But on top of having a legally justifiable reason to lay off an employee, in some cases a works council (Betriebsrat) can also step in to try to prevent a worker from being laid off.

The right to form a work council is a pivotal part of German labour law, and when one is established, an employer needs to negotiate lay-offs with the council.

Considering the case of the nurse with epilepsy mentioned above, it’s likely that in Germany she would not have been laid off. Most German hospitals have a works council, and the council could object to a nurse being fired amid the severe shortage of nurses that Germany is facing.

If her condition prevented her from performing her job, the council might instead suggest that she be transferred to an administrative position, for example, until her condition improves.

Parental benefits

Workers who are parents, or planning to be parents, in Germany are entitled to a wealth of benefits designed to ensure they have enough time and financial support to raise a child while maintaining a career.

Workers who are to be moms are typically entitled to 14 weeks of maternity leave in Germany. This leave comes with an allowance called Mutterschaftsgeld, and may be adjusted for medical reasons, or depending on agreements with employers.

According to EU law, new fathers are also entitled to at least 10 days of paternity leave. This is due to be formally written into law in 2024, but so far an official date for implementation in Germany hasn’t been announced.

Still, between Kindergeld that provides money to parents to offset child rearing costs, Elterngeld which offers pay for parents who want to take time off to raise their children, tax breaks and subsidised child care, parenting in Germany comes with a fair amount of economic support and security.

As anyone who has raised a child in the US knows, the same cannot be said in the US.

briefcase in hand

Workers in Germany tend to receive better sick leave and vacation benefits, in addition to other support for a healthy and secure lifestyle. Photo: Photo by Marten Bjork on Unsplash

A healthy work life balance

Finally, along with the basic protections that German workers enjoy, there is also a culture that prioritises a healthy work-life balance.

This is seen in labour laws – such as Germany’s minimum four weeks of paid vacation per year as opposed to an average of 11 among workers in the US. Here a two-week or even month long vacation each year is par for the course, in addition to several smaller vacations that can be build around weekends or public holidays.

But it’s also seen in workplace culture, where it’s not unusual for colleagues to kindly ask their busy co-workers to refrain from messaging them after hours, for example. Or where the thought of staying home when you’re sick is a no brainer.

Here a small celebration of the Feierabend (time after work) is a sacred daily ritual. There’s even a German word for the celebratory beer you might drink after finishing up for the day.

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