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Work-time model as a competitive factor in the automotive industry

Ferdinand Dudenhöffer, Carina Büttner
ifo Institut für Wirtschaftsforschung, München, 2006

ifo Schnelldienst, 2006, 59, Nr. 09, 30-36

In the automotive industry in Germany, the factors flexibility and innovation play a decisive role. New factories, such as the BMW factory in Leipzig, could be built only because of a labour/management agreement on a capacity utilisation corridor of between 80% and 140% without extra personnel costs, such as overtime. Ferdinand Dudenhöffer and Carina Büttner, Center of Automotive Research (CAR) at of Applied Science, Gelsenkirchen, examine the role played by work-time models in improving worker flexibility. According to their enterprise survey, work-time models are common in the production of car makers and their suppliers. In addition to the production area, the administration, logistics and marketing are areas with potential for work-time models so that "just-in-time labour" models will increase in the automotive industry in Germany in coming years. Employees on work-time models are no longer cheap labour but qualified employees that considerably enhance the flexibility of the enterprises. Precisely here is where the authors see the greatest advantages of work-time models for the automotive industry.

JEL Classification: J210,L920

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ifo Institut für Wirtschaftsforschung, München, 2006