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Opel workers protest GM cutback plans

Several thousand Opel auto workers took to the streets on Thursday as part of Europe-wide protests against cutbacks by US carmaker General Motors.

Opel workers protest GM cutback plans
Photo: DPA

Organisers said between 15,000 and 18,000 people took part in a rally at Opel’s main German plant at Ruesselsheim, near Frankfurt, carrying banners proclaiming “Yes we can” and “Fighting back makes the difference.”

“Opel must live,” Foreign Minister Frank-Walter Steinmeier told the demonstrators, fearful for their livelihood as the beleaguered US parent company bids to slash thousands of jobs across Europe.

Steinmeier, a Social Democrat who will challenge Chancellor Angela Merkel in legislative elections in September, added: “Opel is not just about cars, it is about the people who go to the factory every day.”

He said it was “unacceptable” and “disgraceful” that GM was not safeguarding their jobs.

Peter Giesser, a member of Opel’s works council, said rallies were also expected at GM plants in Spain, Britain, Belgium and Poland.

In Sweden, employees at Saab, another GM subsidiary, were to stage a rally in the southwestern city of Trollhattan, location of Saab’s main Swedish plant with 3,700 workers.

A works council member at an Austrian GM subsidiary, which employs 1,850 workers at a site near Vienna, called for a “European rescue plan” for GM companies, a call echoed by Steinmeier.

GM, which is still threatened with bankruptcy and on Thursday announced a $9.6 billion loss in the fourth quarter, has drawn up a European restructuring plan that would eliminate thousands of jobs.

The US firm has also said it wants to get rid of Saab, which currently benefits from a Swedish court ruling that has helped it to avoid going under. As for Opel, GM is mulling partnerships with outside investors or selling off stakes to keep the company going. In each case, the US group has appealed to public authorities in Europe for aid.

Merkel told reporters earlier Thursday that Germany wants to “build bridges” to help companies afflicted by the crisis and that the government’s preferred method of support for Opel would be to provide loan guarantees. However, she warned that the government would not continue to finance companies with “structural weaknesses.”

The demonstrators called for Opel to split from its parent company, carrying banners saying, “better without GM.”

One employee, Marc Rost, who has worked for Opel for 18 years said the workers “want our bosses to see us as human beings … not as machines that can be dismantled.” Like his fellow marchers, Rost, 39, said he was scared that the site would close and he would lose his job.

“All this will no doubt end up in total chaos,” Andy, a 20-year-old apprentice at Opel, told AFP.

Opel is set to hold a crunch meeting Friday to debate a restructuring plan, which German authorities have said is a pre-requisite for talks over aid. Germany’s Economy Minister Karl-Theodor zu Guttenberg told a news conference he plans to speak to German regional leaders on Saturday about Opel’s plight.

In a cruel twist of fate, Opel is actually increasing output because of strong demand for its compact models during hard times. The company said this week it has dropped plans for slowing production at its plant in the eastern city of Eisenach, which makes the Corsa model. Instead, it will now assign additional teams there.

Demand for the Corsa has also been boosted by a government €2,500-incentive scheme that encourages drivers to turn in old cars for new models that pollute less.

At the end of 2007, GM Europe employed more than 55,000 people, primarily in Belgium, Britain, Germany, Poland, Spain, and Sweden.

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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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