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Merkel prods GM to decide Opel’s fate

Chancellor Angela Merkel on Wednesday prodded US carmaker General Motors to decide the fate of its German unit Opel unit over the next fortnight.

Merkel prods GM to decide Opel's fate
Photo: DPA

“Let’s take the time that is needed. There is a board meeting on Sept 8-9. I hope – I can’t say any more, I don’t decide – that we have made progress by then at the latest,” Merkel said in an interview on Sat1/N24 television.

“We believe that it is good and correct that when it comes to the future of GM Europe, of Opel and GM, a decision is made as soon as possible. But substance must come before speed and if there are still issues to be resolved, then we will resolve them,” Merkel said.

Merkel, who is running for a second term in general elections on September 27, also reiterated that Berlin still favours Canadian auto parts maker Magna and Russian state-owned lender Sberbank to take over Opel, which includes Vauxhall in Britain and employs 50,000 people, half of them in Germany.

A report in the Bild daily said earlier that the had dropped its opposition to GM selling Opel to rival suitor RHJ International after GM’s board – thought to prefer RHJ – failed to name a buyer last week.

However, the Brussels-based investment group would have to team up with a strategic partner in the auto industry, the paper reported, without saying where it got the information.

“We have decided with a clear preference that we support Magna. There is a contract ready to be signed,” Merkel said on Wednesday.

Merkel also said that GM had not proposed to Berlin a scenario whereby GM would keep Opel with the help of financing from the US and European governments, as claimed in media reports.

“Such a solution has never been suggested to us. Our position is that just as GM says it doesn’t want to send any money to Europe, we also have a firewall which means that money invested in Europe must stay in Europe,” Merkel said.

German Economy Minister Karl-Theodor zu Guttenberg said late on Tuesday that he believed GM still wanted to sell.

“The message that we have received from the firm’s management is that they still want to continue looking for an investor,” the minister told ZDF television.

Both Magna and RHJ want to slash around 10,000 jobs at Opel but Merkel and the state governments where Opel has factories prefer Magna because fewer of the cuts would fall in Germany than under RHJ’s proposals.

RHJ has offered to take a 50.1-percent stake in Opel, leaving 39.9 percent in GM’s hands and 10 percent with employees. Magna and Sberbank would each take a 27.5-percent stake, with 10 percent held by employees and 35 percent by GM.

Germany, which has already given €1.5 billion worth of loans to Opel to keep it operating, has proposed a €4.5-billion state financing package to support Magna’s bid.

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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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