Mercedes-Benz owner Daimler announces that it will cut up to 10,000 jobs in the next 2 years. This is a reflection of the losses across the German car industry sector, with Audi also announcing job cuts close to 9500 by 2025. Primary reason cited for doing so is due to the cost of investing in electric vehicles. The EU has imposed strict carbon emission targets in order to climate change, which although much needed, pose these negative consequences. However, as an alternative, Daimler is willing to offer current employees reduced hours and voluntary redundancy packages for those nearing retirement. I think climate change is such an important issue today, however, this article raises a valid issue in combating climate change and shows the flip side of the coin. The government needs to bridge this gap and allow firms to cut back personnel costs so they can shift gears as well as making sure making sure those job cuts don't significantly affect the economy, perhaps creating jobs in another way. What do you think is a good solution?
https://www.ft.com/content/e2e7ddaa-129a-11ea-a225-db2f231cfeae
I unfortunately cannot see your article, however, I agree with you. I believe that climate change is an important topic in today's society. Most people would not even consider the economic consequences of having a company reduce their carbon emission. If companies truly plan to cut that many jobs, then the unemployment rate will increase. I feel as though these companies struggle to find a way to combat cutting jobs or finding new jobs for those they cut because many of the workers they're cutting are unskilled.
ReplyDeleteI think the government should create a fund to subsidize these companies that cannot cover the costs of transitioning towards sustainable energy to avoid the losing of jobs. If climate change really is an important issue to the government, I think this could be a very possible solution
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