Frankfurt: Carmaker BMW AG said on Tuesday it would reduce the working hours for some 26,000 German employees as part of efforts to slow production amid a deepening economic downturn.
The Munich-based company said management and employee representatives have agreed to expand production cutback measures to include shorter work times at selected plants in Germany. It will also reduce the number of temporary workers.
BMW said the hours reduction measure is restricted to its German facilities in Dingolfing, Regensburg, Landshut and Berlin. In Berlin only brake disc production for automobiles will be affected and not motorcycle production. A total of approximately 26,000 employees will work shorter times on certain days during the months of February and March.
BMW has about 100,000 workers at 24 sites in 13 countries worldwide, producing BMW cars and motorcycles, and Rolls-Royce and mini cars. In Germany, BMW employs about 75,000 people.
The company said that even when working on reduced hours, the net income of employees with fixed contracts will amount to at least 93% of their regular pay. If it falls below that level, the company will make up for the difference.
BMW said it will also cut back the number of temporary workers. “Safeguarding jobs even in difficult times by using a broad range of flexibility instruments has always been one of our key strengths,” said Harald Krueger, a human resources director at BMW in a short statement.
“Our wide variety of work schedule models helps us to achieve that. In addition to these measures we are also using a sophisticated combination of flextime accounts, proactive leave planning and temporary short-time working at specific plants. I am confident we will emerge from the current difficult situation stronger than before not least as a result of these measures,” Krueger said.