By Victoria Waldersee

BERLIN, (Reuters) – Germany’s industrial powerhouses are collaborating to retrain workers in fields such as logistics and software to address a rising skills gap. They also aim to avoid any layoffs as the economy transitions to online shopping and clean energy.

Over 36 companies from automotive suppliers like Continental and Bosch, to industrial giants BASF, Siemens and others, have agreed that they will coordinate redundancies and vacant positions at different firms, thus allowing workers to easily move from one job to the next.

Stefan Dries was able to work in a variety of industries before being offered a position at Deutsche Post (OTC) during the outbreak. Even though his caregiving duties were impossible due to social distancing, Dries was able to work for the postal services online.

Dries (38) said he took a 10-day course that covered everything about using software to track and register post and how to lift large packages. He has now worked his way to the manager position at his station.

Starting something completely new is not easy for financial reasons. Dries said you have to desire it. She also stated that it was important for companies to advertise job openings in a way that ensures that workers are trained.

This scheme demonstrates Germany’s long-term, social-market economy model. It gives greater influence to labor unions than free-market capitalism that focuses on maximising profits.

Companies involved will split the cost of this initiative on an individual basis. If a factory is closed, the companies involved will start a conversation about what to do next with their workers.

For example, Continental and Deutsche Bahn have formed a partnership in order to retrain employees no longer required at their auto parts manufacturer for positions at the railway company. The costs are split.

Ariane Reinhart (board member for Human Resources at Continental, chief spokesperson for the business-led initiative) stated that “we know the social costs of unemployment” and wanted to prevent them.

Reinhart said she believed that this scheme was the first. Reinhart cited data showing how unemployment had cost Germany 63 billion Euros ($68.4 billion) by 2020.

German unemployment has been relatively low (5% in March), but there is concern about job loss if businesses don’t adapt quickly to climate changes and increase their efforts in software development to keep up with new foreign competitors.

According to an Ifo Institute study, 100,000 jobs that are tied to internal combustion engines could disappear by 2025 if manufacturers fail to switch to electric cars quickly and train workers.

‘RELIABLE EMPLOYEES’

According to national statistics, the initiative was taken as the number and quality of open jobs in Germany continues to rise, from approximately 320,000 in 2009 up until 850,000 this March, according figures.

German labour market faces growing skills gap https://graphics.reuters.com/GERMANY-COMPANIES/WORKERS/akvezyqrxpr/chart.png

Besides care and catering, engineering, metalwork, and logistics are some of the most sought-after sectors in Germany.

There is a demand for skilled workers from abroad too. Tesla (NASDAQ) highlighted this by its decision to establish its European electric vehicle plant and battery facility in Brandenburg. The state will also provide employment opportunities.

This will boost competition for skilled workers against rival carmakers Mercedes-Benz, Volkswagen (ETR), who each have factories only hours from their homes.

Cross-sector training is a way to keep good relations with Germany’s powerful unions. These often sit on company boards.

Fevzi Sikar is the head of Mercedes-Benz’s workers’ council Marienfelde, in which assembly line workers can be offered software engineering retraining.

They are trustworthy employees and it makes sense to retrain them, as the market has dried up.

Sikar indicated that Mercedes has seen enthusiasm in younger workers, who are looking for new skills to help them become more resilient. Younger colleagues may need to find a new career, even if they are faced with job changes or loss.

The scheme may provide certain skills for Germany, but it is important to attract talent from overseas, Thomas Ogilvie (board member responsible for HR at Deutsche Post), said.

Germany’s coalition government pledges to ease the lives of workers abroad through dual citizenship, and better access to apprenticeships.

“Leaving it to the free market is not enough – it would not be what’s best for workers, or the economy,” Reinhart said.

Germany’s Federal Labor Agency refused to comment.

($1 = 0.9219 euros)