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Coronavirus: Daimler to restart German factories from April 20th

Mercedes-Benz maker Daimler said Wednesday it plans to restart work at factories in Germany from April 20th, after a weeks-long interruption due to the coronavirus pandemic.

Coronavirus: Daimler to restart German factories from April 20th
File photo shows a Daimler employee at the Mercedes-Benz plant in Stuttgart. Photo: DPA

“In a few selected factories, we are implementing a coordinated restart of production,” the group said in a statement.

“From April 20th this will affect the car motor factories in Germany, Mercedes-Benz car factories in Sindelfingen and Bremen and the vans factories.”

Truck and bus sites will also open from the same date.

Germany has ordered strict measures, including a ban on gatherings of more than two people in public, to stem the spread of the coronavirus pandemic.

Measures have been introduced since the beginning of March, but stricter controls came into force on March 22nd and are scheduled to be in place up to and including April 19th.

But Daimler also said that it would extend shorter hours (known in German as Kurzarbeit) for its workers in Germany until April 30th, impacting “the majority of production… as well as administration”.

In the first quarter, Daimler's worldwide sales slumped 15 percent year-on-year, with Mercedes-Benz cars alone seeing a 20-percent drop in China and 16 percent in Europe.

READ ALSO: Kurzarbeit: Germany bets on tried-and-tested tool for coronavirus jobs crisis

Coronavirus “heavily impacts sales on a global scale,” finance chief Harald Wilhelm said in a conference call Wednesday, adding “the overall economic impact cannot yet be assessed with sufficient certainty”.

Wilhelm nevertheless said that Daimler is well positioned to weather the blow.

Car sales falling fast

Meanwhile Volkswagen said Wednesday that it would begin increasing production from April 14th in “a few” factories building car components, which are currently operating at much reduced capacity.

Most of the auto behemoth's sites are closed until at least April 19th, but the group wants “to safeguard the supply of components to plants in China” after the Easter weekend.

READ ALSO: When and how will Germany's lockdown measures end?

“Further details of the mode of operation are expected after Easter” for other components and vehicles sites, VW said.

Daimler rival BMW said Tuesday that it would extend a production stop until April 30th, while Ford's European factories are on hold until at least May 4th.

Car sales plummeted in several European countries in March as far-reaching restrictions on daily life to limit the spread of the coronavirus bit.

Experts expect still-worse performance in April, while ratings agency Moody's forecast a 14-percent contraction in the global car market for 2020 as a whole.

But the picture is brightening in Asia, with “significant growth in demand” in China and South Korea, Mercedes-Benz sales director Britta Seeger said in a statement.

BMW also sees “first signs of a rebound” in China, sales chief Pieter Nota said Tuesday.

'Serious recession'

The coronavirus pandemic is heavily impacting business in Germany.

The German economy, which is Europe's biggest, is expected to shrink by nearly 10 percent in the second quarter, leading research institutes have warned, reported AFP.

“The corona pandemic will trigger a serious recession in Germany,” the six think tanks including Ifo, DIW and RWI said in their annual spring report.

The government has unveiled an eye-watering €1.1 trillion rescue package to cushion the blow for companies and employees, even suspending a constitutional balanced-budget rule to ramp up its response.

The package includes state guarantees for loans to businesses, easier access to benefits for workers placed on reduced hours, and direct support for the hardest-hit firms.

But even with the unprecedented measures, the six institutes warned that the recession “would leave its mark” on the job market.

Germany has long enjoyed record-low unemployment of around five percent, and German workers with their relatively high wages have for years been a key driver of the country's growth via domestic consumption.

Unemployment could climb to 5.9 percent report this year, the institutes said.

The number of workers on shorter hours meanwhile is expected to hit 2.4 million, as giants like Lufthansa, Volkswagen, BMW and Puma join a slew of companies taking up a government scheme that tops up the pay of affected employees.

Looking ahead, the institutes said Germany with its bulging state coffers was “well positioned” to cope with the economic slump and should bounce back in “the medium term”.

For 2021, the institutes expect Germany to notch up growth of 5.8 percent.

The German government will unveil its official projections for the economy on April 29th.

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WORKING IN GERMANY

Four steps to take straight away after losing your job in Germany

Losing a job can be a nightmare situation for foreigners in Germany - but following these simple steps will get you back on your feet in no time.

Four steps to take straight away after losing your job in Germany

In times of economic downturn, layoffs are far from unusual – but that doesn’t make it any more difficult for the people who find themselves suddenly left without work.

For foreigners in Germany, the situation is even more frightening. You may wonder whether your residence status is in jeopardy, how hard it will be to find another position, and whether you can support yourself while you look for another job.

Though it may be hard to think clearly at a time like this, following these four simple steps will set you in good stead to move forward – and hopefully, it won’t be long before another dream opportunity comes your way. 

1. Negotiate your terms 

Before signing or agreeing to anything, it’s crucial that you’re familiar with your rights and understand how much notice your employer has to give you and what kind of settlement you may be owed.

Generally, the rule of thumb is that you get half a month of severance for every year you worked at the company. That said, higher settlements can be negotiated in return for signing a termination agreement (Aufhebungsvertrag), so you may want to seek legal advice before settling. 

Even during a probationary period, your employer will also have to give you a certain amount of notice before your last working day. During the interim, you can either work for the company or be put on what is known as gardening leave in English, where you stay home but are paid as if you were working.

This can all be negotiated as part of a termination agreement, so you should think carefully about what works best for you and consider speaking to your labour council (Betriebsrat) or a legal specialist before making any firm decisions. You should also be aware that you have no obligation to sign any agreement and can legally dispute the layoff if you want to. 

READ ALSO: Can I get unemployment benefits in Germany if I quit my job?

2. Get all the necessary documents from your employer

Once the terms of the layoff are final, ensure that your employer gives you all the necessary documents you need to navigate the next phase of German bureaucracy.

The main two to think about first are the confirmation of work (Arbeitsbescheinung) and the confirmation of your holiday entitlement (Urlaubsbescheinigung).

The first can be sent to the Agentur für Arbeit (jobcentre) as proof of your last job and recent layoff, while the second will help your next employer calculate your vacation days for the rest of the year.

An Arbeitszeugnis, or German letter of reference

An Arbeitszeugnis, or German letter of reference. Photo: picture alliance/dpa/dpa-tmn | Zacharie Scheurer

On top of these documents, you’ll want to ask your employer for a letter of reference (Arbeitszeugnis), which is useful for finding a new job in Germany.

You should also keep hold of your last payslip and statement of earnings (Lohnsteuerabrechnung), which are helpful for tax purposes and may also be requested by the Agentur für Arbeit.

Speaking of which… 

3. Register as unemployed with the Agentur für Arbeit

As soon as you know that you are soon to be unemployed, you should register as a jobseeker with the Agentur für Arbeit. To get full unemployment benefits, you usually have to do this within three days of receiving your termination notice or at least three months before leaving.

Depending on what type of residence permit you’re on, you may or may not be entitled to long-term unemployment benefits (ALG II), but most employees are able to get unemployment insurance (ALG I), which covers a proportion of your former salary while you look for a new role.

It’s important to be a little bit careful here, as claiming long-term unemployment benefits (ALG II) can affect any future citizenship applications. Any severance pay you agree to can also result in you losing some months of unemployment benefits, so these are all factors you will have to consider while deciding on the best way forward. 

READ ALSO: What happens to your work permit if you lose your job in Germany?

4. Inform the immigration office 

If you’re on a residence permit that is linked to your job in some way, like a Blue Card or work visa, you’ll need to inform the immigration office about your change in circumstances as soon as possible.

This should be done in writing, and in German, within two weeks of receiving your termination notice.

You should include all relevant personal information, such as date of birth, residence permit type, and nationality, as well as the date of your final day at work. As proof of the layoff, you should also enclose a copy of your termination agreement or a letter from your employer. 

People enter the immigration office

For foreigners who move to Germany and settle in Berlin, a visit to the Berliner Landesamt für Einwanderung (LEA) is ultimately unavoidable. Photo: picture alliance/dpa | Britta Pedersen

In most cases, the immigration office will give you between 3 and 12 months to look for a new job. If they give you a shorter period, be aware that you may be able to negotiate an extension later on if you are struggling to find work through no fault of your own.

Above all, stay positive. Though it may feel like one door has closed, another one is sure to open. This being Germany, you may just have to wade through a sea of paperwork to get there.

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