BMW reaches deal with workers that allows them to endure up to 30% sales slump without posting a loss or needing layoffs
Seems BMW is preparing for a European economic meltdown. We all know the global economy is in turmoil and BMW is being proactive about it. Last month BMW agreed to a deal with employees that would allow them if necessary to end extra shifts, force mandatory holidays on employees, and remove certain overtime privileges in case of a crisis. These changes allow BMW to survive up to a 30% sales downturn without posting a loss.
A BMW spokesperson states, "Our agreement with workers (of late September) provides for a whole bunch of flexibilisation measures. The goal of the plan is to preserve jobs." BMW instead of cutting jobs should the market turn sour (which things sure seem to be heading that direction) will cut shifts, force employees to take vacations, and eliminate overtime privileges. Sounds a lot better than a string of layoffs.