BMW Global Employment Nears 100,000 Mark

NEW YORK – Boasting what a high-ranking executive says is an excellent working relationship with its 96,000 workers worldwide, BMW seems certain to break the 100,000-employee mark in the near future.

All workers are represented by unions, except in China and the U.S., Harald Krueger, board member responsible for human relations, tells Ward's in an interview.

BMW’s Krueger announces hiring, scholarship program at Spartanburg plant.

The United Auto Workers union says it has entered confidential discussions with “a majority” of U.S. transplants. But a U.S. BMW spokesman says talks have not taken place with the union regarding representation at the auto maker’s South Carolina cross/utility vehicle plant.

Krueger notes his company's board of supervisors has 10 members representing union interests, but says that has not been an impediment to shifting production out of Germany.

BMW’s current contract with domestic (German) workers expires at the end of March, he says, noting wages are negotiated with IG Metall on an industry-wide basis, not one-on-one between the auto maker and union.

“We have good cooperation from our unions,” Krueger says. “It's a trustful partnership.” BMW was able to manage the recent global financial crisis with the help of its partnership with the unions, the executive adds.

Vehicles produced by BMW in Germany have only 25% local content, Krueger says, noting many of the engines required are produced in Austria and some components come from as far away as North America.

Commenting on a situation at a BMW parts warehouse in Ontario, CA, where employees have been told their jobs will be eliminated, Krueger says the action is part of BMW policy to outsource where it makes sense.

BMW even has outsourced some tire operations and instrument-panel assembly in Germany. But it is not the start of a trend; the auto maker is not seeking to eliminate jobs in general, Krueger says.

BMW remains in negotiations with the Teamsters union regarding the fate of 68 workers at the Ontario facility.

Following an appearance here, Krueger traveled to the Spartanburg plant, where he announced 100 new employees, including engineers, information-technology professionals and line workers, would be hired as part of an expansion there.

“(This) reinforces the Southeast region of the U.S. as a vital job producer,” he says.

The Spartanburg plant in October will launch a 6-day work week to meet market demand.

Krueger also announces the launch of a scholarship program in which BMW will collaborate with local colleges to provide opportunities for students interested in manufacturing careers. The program will provide tuition and book assistance to students who participate and work at the plant up to 20 hours per week.

In addition, BMW says it will build a family health center for BMW employees and their dependents at the South Carolina operation.