Word: german
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Dates: during 2000-2009
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...Reithofer is more upbeat. Faced with low-cost competition from Asia and Eastern Europe, he says, "many German firms did their homework, and now they are benefiting from it." He thinks Germany could go further, for example, in reducing high nonwage labor costs. But Germany still has competitive advantages, he says, pointing to its traditional engineering prowess combined with a newer ability to cater to the needs of individual clients. The challenge, he tells TIME: "It's all about mastering complexity...
...also driven some hard bargains with its workforce. It began to back away from rigid German working hours in the late 1980s, when it opened a new plant in Regensburg to produce the 3-series. Its goal even then was to decouple the union-regulated workweek from the amount of time its factory was in operation. Management made flexible working hours a condition of its investment in the plant. The demand infuriated the powerful German autoworkers union, IG Metall, but the syndicate had little choice. "Without these restrictions we wouldn't have come up with these solutions...
Winning union approval for even greater flexibility was easier in Leipzig. In part, that's because other German automakers, particularly Volkswagen, were threatening to move some of their production outside Germany altogether because of high costs. In the end, the union agreed to extend working hours without extra pay. That has been a boon to the whole industry--and the German economy. Reithofer acknowledges that the wage restraint "has been a fundamental contribution to making Germany competitive again...
...gained particular concessions from its workers because Leipzig is in formerly communist eastern Germany, where unemployment has been about double the western German level and wages have lagged. Under the negotiated agreement, BMW doesn't pay higher rates for Saturday work in Leipzig, and employees put in on average two more hours a week than in western German BMW plants. Moreover, about half the 5,000 workers in Leipzig are not on BMW's staff; they either work for suppliers such as Faurecia or are so-called lease workers employed by specialized agencies and used by BMW when needed. That...
Union representatives generally rate BMW a good employer, and they characterize overall relations with management as good. The feeling is mutual. "German law is better than its reputation, and so are the unions," says Leipzig plant director Peter Claussen. Still, the use of so many lease workers in Leipzig is a sore point. Jens Köhler, the workers' main representative in Leipzig, reckons that lease workers receive about two-thirds the monthly pay and fewer benefits than colleagues who are BMW staffers. Calculated on an annual basis, once Christmas bonuses and profit sharing are included, lease workers are paid only...