Germany: the “transfer company” concept seduces companies and unions and goes beyond social plans

Going from one job to another without being unemployed is the main idea behind German transfer companies. Besides, in addition to the management of social plans, these structure companies could become lasting tools to anticipate the social consequences of increasingly "flexible" staff management. (Ref. 080614)
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The large “employment companies” (Beschäftigungsgesellschaft) which appeared in the Eastern German Lander after the Reunification serve as a basis for the concept of the “transfer companies” which are expanding in Germany. At that time, the reorganization of the east-German economy forced thousands of people into unemployment.

Super specialized employment. Then, the Federal State favored the creation of employment companies, usually managed by the local authorities, which were both reclassification agencies and corporate incubators. Set up in regions which were economically stricken, these companies, which often gathered thousands of employees from different companies, did not have a real experience in terms of reclassification.

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