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German Media Roundup: can Opel motor on without GM?

Would German carmaker Opel be better off without its troubled US parent General Motors? German newspapers in The Local’s media roundup aren’t so sure.

German Media Roundup: can Opel motor on without GM?
Photo: DPA

General Motors on Tuesday must present its restructuring plan to the US Congress in order to justify a $13.4 billion loan package from the government. But if American lawmakers aren’t convinced, it will have potentially dire consequences for its German division Opel. In recent days, voices in Germany have been growing for the storied German carmaker to break away from GM.

Might German states where Opel has factories even take a stake in the company in order to secure jobs and shield it from American cost-cutting plans? Many newspapers in The Local’s media roundup seem to be advocating tough love for the German automotive icon, seeking to avoid a precedent of providing government aid to large companies in trouble.

The Financial Times Deutschland states clearly in a brusque editorial that Germany should not intervene to rescue Opel: “Close your eyes, take a deep breath, and try to imagine a world without Opel. If you should decide that nothing would change, then you feel the same as almost all Germans – excluding those directly and indirectly employed by the plants, and some Opel drivers.”

The paper argues that companies bear their own risk of insolvency, and that the state has only intervened on behalf of the banks in the current crisis because financial institutions have a significance for the overall stability of the national economy – which is not the case for Opel. “Germany’s politicians seem to have already got so used to playing the rescuers that they step in all over the place where things are tight, like a reflex. This development cannot go any further.”

Business daily Handelsblatt also sees the consequences of government intervention as having a potentially disastrous global impact. “State handouts for industrial companies are a poison, whose catastrophic effects will soon be felt not only in Germany but also throughout the networks of our ever shrinking planet,” writes the paper. ”Who is going to be able to plausibly combat the wave of protectionism sweeping through the world of the G20, when he buckles at home at the first sign of a collapse?” Insolvency is not only necessary to allow a market economy to function, argues the paper, it also allows those parts of a company which are still economically viable to survive.

Berlin-based Tagesspiegel on the other hand chooses to outline the reasons why the state premier of North Rhine-Westphalia, Jürgen Rüttgers, will possibly fail in his attempt to secure agreement from GM executives for hiving off Opel: “Firstly, because GM doesn’t want to bother itself with German state politicians; secondly, because the European Commission would go on the warpath after its experience with the Volkswagen law; and thirdly, because German tax money would directly help the ailing GM company.“

The conservative Frankfurter Allgemeine Zeitung is also keen to point out that the difficulties faced by Opel cannot be entirely blamed on GM and that its sales in Germany have plunged by 25 percent. “A state share in the company will do nothing to change that,” opines the FAZ. Instead, supply must be adapted to fit demand, and, even in the case of insolvency, “most of GM and Opel would survive.”

For members

WORKING IN GERMANY

Five things to know about salaries in Germany

Finding a job is typically a top priority when planning a move to Germany. The country boasts the third largest economy in the world and a continuing need for skilled professionals. 

Five things to know about salaries in Germany

If you are moving to Germany, you might soon start looking for a job in the country. However, like many other aspects of living abroad, there are several cultural differences and specificities when it comes to job hunting in Germany – especially when it comes to salaries.

Here are five things to know about salaries in Germany.

There is a minimum wage in Germany

Germany’s minimum wage of €12.41 per hour, pre-tax came into effect at the start of this year. This amounts to a monthly salary of €2,054 which ranks ninth in the world. The minimum wage will rise again in 2025 to €12.82 per hour before tax deductions.

There have been calls recently to hike the salary up higher to €14 per hour.

READ ALSO: Millions of workers in Germany ‘earning less than €14 per hour’

Find out salary expectations

Germany does not require companies to list salary ranges for listed positions. But that may be changing soon. The EU parliament passed a wage transparency law to require companies to publish annual reports detailing wage and wage discrepancy information. The rules, which are set to go into effect in 2027, are intended to help close the gender pay gap. 

In the meantime, employees can utilise online resources to find industry averages and expectations for different roles:

  • Gehalt.de offers users access to salary information on more than 800 professions
  • Online platform, Kununu provides compensation information and employer reviews to users in the DACH region  
  • Berlin residents can utilise REDSOFA’s salary survey for an overview of salary averages in the country’s capital city

As of April 2023 the average gross monthly salary was €4,323 according to Germany’s Federal Statistical Office.

Two-thirds of full time workers make less than this average monthly salary and one-third of workers earn more than this average monthly salary.

While wages after deductions may be less than similar roles in other countries, it is also important to take into consideration what other benefits come with a salary. Paid holiday leave, pension contributions, long notice periods and annual bonuses can help make up some of that difference. 

READ ALSO: How much do employees in Germany typically earn?

Check your payment schedule

Internationals can usually expect their salary once a month when working in Germany. Many German companies choose to pay employees either on the 1st or 15th of the month. It is also important to note that most employees can expect to receive their first pay check within 30 or 45 days of starting. 

For positions that offer yearly bonuses, these payments are included in a 13th pay check which are subject to income tax.  

A person works on a laptop.

A person works on a laptop. Image by Bartek Zakrzewski from Pixabay

How many hours do you work?

When looking for a job, don’t forget to check how many hours you can expect. Job descriptions will include expectations for time commitments. 

Mini-jobs, as expected from the name, are limited in hours and pay. Employees can expect up to €538 per month. Mini-jobs do not provide social security because they do not require social security contributions. Employees are also not automatically covered by health and nursing care insurance. 

Teilzeit, or part time jobs, are defined as any job where working hours are less than a full time position.

A common misconception is that part-time work requires working 20 hours or less a week. But an employee working five days a week for 30 hours, at a position that is typically 40 hours when full time can also be defined as a part time worker. 

READ ALSO: The rules in Germany around ‘mini’ and ‘midi jobs’

In fact, Germany has a term for workers who work between 28 and 36 hours a week. Vollzeitnahe Teilzeit, or nearly full time part time workers, can be a popular choice for some people, including parents. These positions can give employees more flexibility to balance work and family responsibilities. It is important to note that these workers are paid according to their time worked, so it will still amount to less than full time.

Depending on the work schedule, part time employees can earn the same amount of vacation as their full-time counterparts. That’s because holiday leave is calculated based on days worked, not hours. If a part time worker comes in five days a week, they will be eligible for at least 20 days of holiday. If that same part time worker comes in three days a week, they will be legally entitled to twelve days of vacation, even if they worked the same hours as the other employee. 

In most companies, weekly working hours between 35 and 40 hours are considered full-time employment or Vollzeitbeschäftigung

Watch out for the gross v. net difference

Before you sign the dotted line, it will be important to check how much of your gross salary you’ll be able to keep come pay day. Companies that include salary expectations in descriptions include gross salary (Bruttoeinkommen) – not the net income after taxes and deductions (Nettoeinkommen). The amount deducted will depend on how much you earn, the tax class you’re in and on other factors such as how much you’re paying for healthcare but it is usually around 40 percent. 

Salaried employees can find information on the deductions on their pay slip. Some to expect to see include:

  • Taxes are deducted directly from the gross pay. The amount is based on the tax bracket your salary falls within 
  • A percentage of your gross salary is also deducted for your pension / retirement contributions
  • Church taxes between eight and nine percent of your salary will also be due if you are affiliated with a religion
  • Unemployment insurance amounts to a 2.5 percent deduction from your gross salary. It is important to note that the insurance covers a salary up to €90,600 
  • Health insurance contribution rates are typically split between employers and employees. The rate depends on the provider. In 2024, the TK contribution rate to health insurance is 15.8 percent of the gross income

READ ALSO: What you need to know about your payslip in Germany 

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