Latest economy and HR news

Latest economy and HR news

German companies don’t feel ready for digitalization

A Comteam study, pub­lished by Han­dels­blatt, showed that most man­agers in Ger­many don’t feel that their com­pa­nies are ful­ly fit for dig­i­tal­iza­tion. Only 39% of the man­agers sur­veyed believe that their com­pa­ny is well pre­pared for the tech­ni­cal require­ments of dig­i­ti­za­tion. Fur­ther­more, man­agers from larg­er com­pa­nies with 1,000 to 10,000 employ­ees are more con­fi­dent, as over half of them feel tech­ni­cal­ly capa­ble. Tech­ni­cal capa­bil­i­ty is not just what man­agers are con­cerned about: 55% of man­agers believe that dig­i­tal­iza­tion requires accom­pa­ny­ing cul­tur­al work. How­ev­er, two thirds of those sur­veyed feel that the cul­tur­al prepa­ra­tion for dig­i­tal change in their com­pa­ny is not or only mod­er­ate­ly suf­fi­cient. In organ­i­sa­tion­al terms as well, only a third of respon­dents believe their com­pa­ny is ready for dig­i­ti­za­tion. Fur­ther imple­men­ta­tion of e‑learning is of great impor­tance to man­agers, such as the use of Learn­ing Man­age­ment Sys­tems (LMS).

Unexpected decline in joblessness in Germany

After months of con­cern that Ger­many could fall into a reces­sion, it has been report­ed this month an unex­pect­ed drop in job­less­ness. Bloomberg report­ed that the num­ber of peo­ple out of work fell by 10,000 to 2.276 mil­lion in Sep­tem­ber. How­ev­er, those who were reg­is­tered in this num­ber were amongst those receiv­ing basic secu­ri­ty ben­e­fits. Unem­ploy­ment still con­tin­ues to increase. The labour mar­ket in Ger­many has been affect­ed by a slump in exports and the man­u­fac­tur­ing indus­try is already in reces­sion. In response to the job­less­ness rates, despite some con­cerns being eased by the drop this month, the Ger­man gov­ern­ment has sig­nalled that it would step in with fis­cal sup­port but does not see the need to act so far.

EU Brexit deal decision “at end of the week”

French Pres­i­dent Emmanuel Macron has told Boris John­son that the EU will decide at the end of the week whether a Brex­it deal will be pos­si­ble. UK and EU nego­tia­tors will meet this week to come to an agree­ment, which Macron said should “respect” EU prin­ci­ples. Accord­ing to the BBC, John­son will hold calls with the lead­ers of Swe­den, Den­mark and Poland today, after speak­ing with Macron yes­ter­day, to dis­cuss his lat­est pro­pos­als for the Irish bor­der. Despite claim­ing that Par­lia­ment is sup­port­ive of his Brex­it plans, Jere­my Cor­byn is organ­is­ing a cross-par­ty meet­ing between Labour, the SNP, Lib Dems, Greens and oth­ers to scru­ti­nise next Brex­it pro­pos­als and to “hold the gov­ern­ment to account”.

Income gap continues to widen

A recent study from the Wirtschafts- und Sozial­wis­senschaftlichen Insti­tuts (WSI), report­ed that the inequal­i­ty of income in Ger­many has reached a new high, with the gap between the afflu­ent and the low­er income groups has widened even fur­ther in recent years. WSI expert, Dorothee Span­nagel, stressed that the inequal­i­ty has been grow­ing much more slow­ly than at the begin­ning of the mil­len­ni­um, but the gap between the very poor and the very rich is widen­ing con­stant­ly. In order to coun­ter­act the grow­ing inequal­i­ty, the WSI experts rec­om­mend a whole bun­dle of gov­ern­ment mea­sures. Man­ag­er mag­a­zin sum­ma­rized WSI’s sug­ges­tions: from strength­en­ing col­lec­tive bar­gain­ing to increas­ing the min­i­mum wage and increas­ing tax­a­tion on top incomes and very high inher­i­tances.

AMS vowed to keep pursuing the acquisition of Osram Licht

In a state­ment on Fri­day, AMS said that Osram investors ten­dered 51.6% of their shares, falling short of a 62.5% thresh­old set by the Aus­tri­an Apple Inc. sup­pli­er for the deal to be suc­cess­ful. Despite fail­ing to gar­ner enough sup­port from share­hold­ers after its 4 bil­lon euro bid to takeover Osram Licht AG, AMS AG has vowed to “explore strate­gic options” for a takeover. Osram, which has been strug­gling with a mar­ket slow­down, emerged as a takeover tar­get last year and con­firmed talks with Bain and Car­lyle in Feb­ru­ary. How­ev­er, a bid­ding war broke out in July when AMS lobbed a high­er offer. AMS is still the high­est share­hold­er in OSram, with a 19.99% direct hold­ing. AMS CEO, Alexan­der Everke said in a state­ment in response to the failed acqui­si­tion, “we intend to lever­age our posi­tion as Osram’s largest share­hold­er in a dia­log with Osram as we con­tin­ue to pur­sue the full acqui­si­tion of the com­pa­ny.” Read the full arti­cle here.


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Your Glasford Inter­na­tion­al Deutsch­land Research and Ana­lyt­ics Team