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BMW slashes 850 UK jobs at Mini

German automaker BMW said on Monday that it would shed 850 workers in England who help to make the Mini as the economic crisis hits demand for the iconic car, celebrating its 50th birthday in 2009.

Published: 16 February 2009 13:18 CET
BMW slashes 850 UK jobs at Mini
Photo: DPA

BMW said nearly a fifth of workers at its plant in Cowley, near London, would be affected by the downsizing starting on March 2 to coincide with a reduction in the working week to five days from seven.

“While Mini has been weathering the economic downturn, it is not immune from the challenges of the current situation,” BMW said in a statement. “Against this backdrop the company felt that a review of its shift patterns was necessary,” it said, adding: “This decision has not been taken lightly.”

Prime Minister Gordon Brown’s spokesman described the news as “very disappointing”, adding: “All I can say really is the government is doing and will do everything it can in order to help those affected… working with the company and the individuals affected to help them retrain and, or find alternative employment.”

Tony Woodley, joint leader of the Unite union, called the manner of the announcement “disgraceful”, with workers claiming they were given only one

hour’s warning.

“Sacking an entire shift like this, and targeting agency workers who have no rights to redundancy pay, is blatant opportunism on BMW’s part and nothing short of scandalous,” Woodley said.

“BMW’s parent company couldn’t attempt this in Germany because it would be illegal to do so… We will be seeking to meet with the company as soon as possible to fight back against these needless cuts. We will also be keeping up the pressure on our government to do more to protect jobs in this country,” added the union boss.

BMW, which is struggling in its key North American market, previously said that its overall 2008 vehicle sales were down five percent from the year before. Sales of the Mini – which celebrates its 50th anniversary in August – were down by 35 percent in January.

“I feel betrayed” by Monday’s announcement, said John Cunningham, who has worked at the factory for more than two years.

“They’ve planned this for months and we’ve only just been told – one hour’s notice,” he told the BBC. “I don’t know what’s going to happen to me and my family. It’s very scary.”

BMW had already decided to halt production of Minis at Cowley from Monday for one week. The plant currently employs about 4,500 workers. Last week, German-owned luxury car brand Bentley said it would axe 220 jobs in England and temporarily cut pay for retained staff by a tenth as it battles sliding sales.

Meanwhile Jaguar and Nissan have also announced major British job cuts in recent weeks, while Honda is closing its factory in Swindon, western England, for four months.

In January, the government unveiled a £2.3-billion (€2.6-billion) support package for Britain’s ailing auto industry.

Sales of new cars in Britain tumbled by more than 30 percent in January as the recession slashed demand for new vehicles, trade data has showed.

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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.

Published: 10 September 2024 16:34 CEST
Updated: 15 September 2024 08:14 CEST
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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