The large-scale layoffs announced by Bosch, Continental, ZF and many other European auto parts giants in recent months seem to have greatly stimulated the nerves of unions and workers. The protests first erupted at Bosch, the world's largest auto parts supplier. Just last Friday, thousands of workers gathered outside several Bosch factories in Germany to protest the company's plans to close factories and relocate jobs.
According to IG Metall, Germany's largest trade union, about 25,000 people took part in a nationwide protest this Wednesday, March 20. More than 10,000 people demonstrated in front of Bosch's headquarters to protest its mass layoffs, with employees from Mercedes-Benz and MAHLE also on site. About 15,000 people also protested outside Bosch's plants in Ansbach, Salzgitter, Bamberg and Hildesheim. "Bosch is just the beginning, and other companies will follow. Barbara Resch, the new regional manager of IG Metall Baden-Württemberg, points out.
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The union fought back
The transition from traditional internal combustion engines to electric vehicles seems to have brought about a sea change in the supply chain. Coupled with the weak global economy and persistent inflation, the transition is more difficult, and the direct result is layoffs.
German media note that in the past few months, Bosch has repeatedly announced plans to lay off more than 7,000 jobs, almost half of which will be in Germany. In terms of sectors, around 3,200 jobs belong to the automotive parts sector, most of which involve factories in Germany. Bosch, for example, announced late last year that it would lay off at least 1,500 workers at two transmission plants in Germany.
Just last Friday, about 3,000 workers from different factories gathered outside Bosch's Boolean plant to protest. The reason is that it is planned that by 2025, about 1,000 employees at the plant will lose their jobs due to relocation, layoffs, etc.
Workers also gather at the factory in the town of Arnstadt, where generator regulators are produced as car parts that are no longer needed for electric vehicles. Due to a lack of orders, the plant will be closed by the end of this year, at which point 100 jobs will disappear.
There were also protests outside Bosch's Munich plant on Friday, which may relocate 250 jobs overseas, but no final decision has yet been made. In an email to Reuters, plant manager Joerg Luntz said: "We are losing money on every fuel pump we make in Munich. ”
Bosch also plans to lay off around 1,200 employees in the software and electronics division by the end of 2026, of which 950 (about 80 percent) will be in Germany.
"These decisions not only threaten our very existence, but also Bosch's ability to innovate and confidence in the future. Frank Searle, head of the Works Council at Bosch's Smart Mobility Division, said, "This cannot continue. We can't treat ourselves like this. Stop this crazy layoff. ”
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Germany has become the "hardest hit area" of layoffs
Trade unions in Germany and elsewhere have warned that the transition to electric vehicles could lead to millions of people losing their jobs if workers are not retrained. Specific to the field of parts, not long ago, Frank Schhope, a lecturer in automotive economics at the Hannover University of Applied Sciences in Germany, predicted in an interview with foreign media Automobilwoche that as the industry shifts to electrification, by 2030, the German automotive supplier field may lose 1/4 of its jobs. Statistics show that auto parts suppliers currently employ around 270,000 people in Germany. Schhope believes that number could fall to 200,000 by 2030.
What particularly disturbs the German trade unions is that the recent news of layoffs by European component giants continues, but the "hardest hit area" is Germany. For example, ZF plans to lay off 12,000 employees in Germany by 2030, which is almost one-quarter of all ZF employees in Germany. Continental's 7,150-job layoff plan was officially launched not long ago, and is scheduled to be completed by the end of 2025, with about 40% of the layoffs taking place in Germany. The French supplier Freya Group, which has operations in Germany, also plans to lay off 10,000 employees in Europe by 2028.
In addition, the German economy has suffered a big blow due to the impact of the Russia-Ukraine conflict, with soaring energy prices and supply chain turmoil, causing many companies to relocate and flee. Michelin, for example, plans to close two of its tire factories in Germany by the end of 2025 and move its customer contact center from Karlsruhe, Germany, to Poland, a move that will affect more than 1,500 workers. Goodyear also plans to close two factories in Germany in 2025 and 2027, leaving about 1,800 workers unemployed. For the German automotive industry, this is undoubtedly worse.
Text: Zhang Dongmei Editor: Huang Xia Layout: Wang Kun Picture from: Stimme.de website
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