Being an American, you generally see a fair amount of temp workers used throughout the US. Companies got smart in the 1970s, and began to ramp up a hiring program every fall (usually around October), and bring temp workers to handle the Christmas rush.
In the US, you have a number of groups to go out and recruit from. There's the recently unemployed folks who are eager for anything....even if it's only a job for twelve weeks. There's the college kid crowd, who'd ready agree to forty hours of night work throughout a week....just to help pay on some of their bills. Then you have the crowd who are already working forty hours during the regular job, and would like a second job which pays for an additional twenty to forty hours.
Over the past week or two....the Amazon guys in Germany have walked into some bad PR stuff. They did what they typically do in the US....carry a minimum staff for eight months out of the year, and then bulk up for Christmas. It would appear that they weren't doing fabulous business before 2012....just continually building each year. And in summer of 2012.....they knew this was going to be a big moment for the company....so you needed real manpower for Christmas of 2012.
The problem is....as the weeks went by in late summer and early fall, the Amazon guys appear to have discovered that temp workers just weren't going to be plentiful temps to hire. No college kids, no recently unemployed, and no folks looking for their second job to bulk up their pay situation.
So Amazon looked at the EU hiring rules, that Germany has to agree and work with. As long as you hire a EU guy from any country.....Germany has to accept it. So it appears that Amazon hired up a number of Spanish unemployed folks, and transported into Germany....with various guarantees (even some temp housing in the deal). As bad as the employment situation is in Spain....this temp deal in Germany sounded great.
So they arrived and found black uniformed Hess security guards at the warehouse....fairly tough and stringent on security. The pay? Some German news sources talk of the normal German taxes taken, and then some money taken to pay for their housing (which maybe the Spanish temps thought this was all free and part of the deal). At the end of this whole mess....the temps were unhappy and finally spoke up about this stuff.
Some German employment office folks are going to come out and visit.....ask for records, and ask Amazon to explain the accusations.
My humble guess is that Amazon will show that they went by the EU rule book, and they will be correct on that matter. The guards? They probably were excessive, and the appearance they gave of Nazi security was probably a serious blunder. The housing deal? They might have stumbled on this part of the situation, the government investigation might show that.
But we come to this odd moment....there's barely seven months left now....before the next round of serious Amazon build-up for Christmas 2013. What do you do? You really screwed up in 2012. You can't go back to Spain because no one there will dare work for you.
The German worker possibility? You've gotten a bad reputation so far for hiring temps, so you'd have hire folks at premium levels and significant pay. That's not the traditional Amazon way.
About the only way they will slide out and solve the next Christmas rush....is hire some company with a friendly name and let them act as the warehouse operation management team. Remove the Amazon logo on the front of the building, and invent something new and generic to reinvent the reputation of Amazon.
Germany just isn't a place where temp workers exist, and if you do find some....they are in small quantities.
Sunday, February 17, 2013
Thursday, February 14, 2013
The Hobby Story
There's an interesting German legal piece in the Wiesbaden Kurier today....over taxes and 'hobbies'.
Out of the Munster area....there's this guy who ran a legal office, with several folks hired as lawyers for his company. It's not clear if this was a major operation or just a small operation, but as profits went....this lawyer and his company had an interesting yearly event.
For a number of consecutive years....he ran with his team....on significant losses. Bad luck? Don't know....that was never laid out in this tax case.
The thing is....he claimed these losses (five and six figures) on his taxes each year. If he had done this one year, then skipped a year, and done it again in the third....no one would have noticed much or said anything. But when he does for a number of years....always noting significant losses, the German tax folks just weren't going to accept that. You can't be that screwed up (at least in their mind).
So the court came out with an interesting ruling, which is local in nature, and may be taken to the national court. They said....he ran his legal operation as a 'hobby', not as an authentic office. And in the area of hobbies, you can't claim losses (or profits for that matter). There's no hint of the next step....but it might interest enough folks to have it checked at the national court level.
The judge noted at some point, that the guy never even wanted to clear a profit....he seemed more bound to note all the losses as part of this guy's tax scheme.
As an American, I'm always amazed by the twists and turns of the German legal system. Course, I'm also amazed how a guy could run year after year....with losses...and still be in operation. Frankly, if I knew he was this unsuccessful as a lawyer....I might not even want to hire the guy.
Just observations.
Out of the Munster area....there's this guy who ran a legal office, with several folks hired as lawyers for his company. It's not clear if this was a major operation or just a small operation, but as profits went....this lawyer and his company had an interesting yearly event.
For a number of consecutive years....he ran with his team....on significant losses. Bad luck? Don't know....that was never laid out in this tax case.
The thing is....he claimed these losses (five and six figures) on his taxes each year. If he had done this one year, then skipped a year, and done it again in the third....no one would have noticed much or said anything. But when he does for a number of years....always noting significant losses, the German tax folks just weren't going to accept that. You can't be that screwed up (at least in their mind).
So the court came out with an interesting ruling, which is local in nature, and may be taken to the national court. They said....he ran his legal operation as a 'hobby', not as an authentic office. And in the area of hobbies, you can't claim losses (or profits for that matter). There's no hint of the next step....but it might interest enough folks to have it checked at the national court level.
The judge noted at some point, that the guy never even wanted to clear a profit....he seemed more bound to note all the losses as part of this guy's tax scheme.
As an American, I'm always amazed by the twists and turns of the German legal system. Course, I'm also amazed how a guy could run year after year....with losses...and still be in operation. Frankly, if I knew he was this unsuccessful as a lawyer....I might not even want to hire the guy.
Just observations.
Horse Meat Episode Continued
I think the authorities throughout Europe were hoping on a quick conclusion to the horse meat episode. Based on various news sources today....I'd say we might only be half-way through the mess.
One source reports that a French company, who imported from eastern Europe (Cyprus, Romania, etc), was involved.
Another news source says that testing concludes some portions of the horse meat has horse pain-killers noted, which is very illegal by European regulations.
At least one news report indicates that Ireland has found some products....which were supposed to be one-hundred percent beef.....instead....was one-hundred percent horse meat.
Real, which is a major German super-market store....has been yanking a couple of products off the shelves and trying to ensure there is absolutely nothing out there....that might contain horse meat.
Interestingly enough....even Burger King Europe got into the mess....dumping their purchase of Irish and British beef....suspecting it to be contaminated, and buying German beef right now instead. It's not considered a long-term move to buy German beef (usually more expensive than most), and the business reporting indicates this is a short-term matter to make customers feel sure about the source of their burgers.
The final word on this? A British paper (Walesonline) interviewed a German professor who is an expert in just about every meat in existence....a Doctor Victor Benno Meyer-Rochow. The Doc says that generally....there's nothing bad about horse meat, and that it's simply a taboo meat. As he points out....we've all adapted to not eating companion meats. He might have a point on that.
As a news item....I'm guessing it'll stay in the top five German discussed items for another five days....until there are no more surprises out there.
One source reports that a French company, who imported from eastern Europe (Cyprus, Romania, etc), was involved.
Another news source says that testing concludes some portions of the horse meat has horse pain-killers noted, which is very illegal by European regulations.
At least one news report indicates that Ireland has found some products....which were supposed to be one-hundred percent beef.....instead....was one-hundred percent horse meat.
Real, which is a major German super-market store....has been yanking a couple of products off the shelves and trying to ensure there is absolutely nothing out there....that might contain horse meat.
Interestingly enough....even Burger King Europe got into the mess....dumping their purchase of Irish and British beef....suspecting it to be contaminated, and buying German beef right now instead. It's not considered a long-term move to buy German beef (usually more expensive than most), and the business reporting indicates this is a short-term matter to make customers feel sure about the source of their burgers.
The final word on this? A British paper (Walesonline) interviewed a German professor who is an expert in just about every meat in existence....a Doctor Victor Benno Meyer-Rochow. The Doc says that generally....there's nothing bad about horse meat, and that it's simply a taboo meat. As he points out....we've all adapted to not eating companion meats. He might have a point on that.
As a news item....I'm guessing it'll stay in the top five German discussed items for another five days....until there are no more surprises out there.
Wednesday, February 13, 2013
The Horse Meat Saga
If you follow European news....horse meat stories have popped up over the last two or three weeks. Basically....you've got one butcher shop (based on reports, it's only been identified to one)....that screwed up, and mixed horse-meat with the beef, and let go out the front door.
Generally, this is coming from an American who has observed this.....a butcher in Germany is usually a butcher who generally does a lot of different butchering jobs (pork, beef, chicken, etc), but horse butchers have a unique shop and they stay separate.
My first introduction to such a deal was the Kaiserslautern city fair....where I discovered that one single butcher trailer was set up at the end of the whole operation.....with a funny smell. My wife kind of explained this to me, and I simply observed from the distance.
Growing up in the American south.....you just don't come across horse meat too often, and generally would turn it down quickly. Yeah, we'd accept goat, ostrich, and even gator-meat.....but horses just aren't an acceptable thing there either.
How many Germans get into it? I'd make a guess that every community has a couple of folks, but it's likely in the range of three Germans out of a hundred (my humble numbers)....maybe even less than three. You'd always see a few folks at the fair trailer....making purchases, but it wasn't a significant crowd.
This scandal? Well...for around three months....this butcher company pumped out meat that was mixed up with regular beef, and it went to various production companies that made different meals. German authorities are all over this and really want to ensure the 'purity' of their market items. I'm guessing that the sooner they feel sure the problem is ended....the quicker you will see this story disappear from the press.
The butcher company at fault? From past episodes in Bavaria where bad meat was sent out and the press got into the whole mess....the companies tended to fold up or be bought out quickly. Once you get a bad reputation for anything in the marketplace....it's hard to operate from that point on. Your reputation....as a German business...is always at stake, and you rarely see screw-ups like this. Note: this was a Luxembourg company....not a Germany company.
So if you ever hang out at a big-town fair and you sense this funny smell in the air....you can take a fair guess what it is and just make a 360-degree circle to find the trailer with the horse-meat.
Generally, this is coming from an American who has observed this.....a butcher in Germany is usually a butcher who generally does a lot of different butchering jobs (pork, beef, chicken, etc), but horse butchers have a unique shop and they stay separate.
My first introduction to such a deal was the Kaiserslautern city fair....where I discovered that one single butcher trailer was set up at the end of the whole operation.....with a funny smell. My wife kind of explained this to me, and I simply observed from the distance.
Growing up in the American south.....you just don't come across horse meat too often, and generally would turn it down quickly. Yeah, we'd accept goat, ostrich, and even gator-meat.....but horses just aren't an acceptable thing there either.
How many Germans get into it? I'd make a guess that every community has a couple of folks, but it's likely in the range of three Germans out of a hundred (my humble numbers)....maybe even less than three. You'd always see a few folks at the fair trailer....making purchases, but it wasn't a significant crowd.
This scandal? Well...for around three months....this butcher company pumped out meat that was mixed up with regular beef, and it went to various production companies that made different meals. German authorities are all over this and really want to ensure the 'purity' of their market items. I'm guessing that the sooner they feel sure the problem is ended....the quicker you will see this story disappear from the press.
The butcher company at fault? From past episodes in Bavaria where bad meat was sent out and the press got into the whole mess....the companies tended to fold up or be bought out quickly. Once you get a bad reputation for anything in the marketplace....it's hard to operate from that point on. Your reputation....as a German business...is always at stake, and you rarely see screw-ups like this. Note: this was a Luxembourg company....not a Germany company.
So if you ever hang out at a big-town fair and you sense this funny smell in the air....you can take a fair guess what it is and just make a 360-degree circle to find the trailer with the horse-meat.
Wednesday, February 6, 2013
Fifty Years Later
Rumors indicate today that President Obama is working up a schedule for June....which either at the start or finish....stops off in Berlin, where he will deliver the Kennedy speech (50 years to the day).
It was roughly a five-minute speech. The key element....fifty years ago...was that the United States was going to lay down a secondary card, after the Berlin Airlift, to indicate that it wasn't going to put West Germany down on the world's totem pole. Americans were going to be willing to puts troops and military power down to ensure West Germany stayed free.
For the most part....it was a five-star speech and didn't really change much of anything. We already had troops in Germany, and weren't planning any significant changes.
It was a speech to be a demonstration to the Germans. A five-star speech? Yeah, probably one of the ten best speeches of the century, without doubt. Short, to the point, and arousing to the crowd.
A repeat of the speech? President Obama could just repeat the words and leave it there. He could try to trump Kennedy's Berlin speech. He could simply lay out a bold new version of where the world should go.
The crowd? I'm of the mind if the weather cooperates (it's always a 50-50 thing on weather in June)....it could be a 500k person crowd. Put in bad weather? Figure closer to 250k. I'm one of those folks who ran remember a June bar-b-q from twenty years ago where it was too cold except around the fire itself to stand.
Will Gitmo matter? Well....most Germans know it's still an issue. The drone stuff? It's turning into a negative anchor right now. The Aghan war? Well....it's still going but there's an end to the mess in sight.
I anticipate that this will likely be the last swing through Germany for President Obama for the remaining four years, and he'll try to deliver a Kennedy-dramatic piece.
It was roughly a five-minute speech. The key element....fifty years ago...was that the United States was going to lay down a secondary card, after the Berlin Airlift, to indicate that it wasn't going to put West Germany down on the world's totem pole. Americans were going to be willing to puts troops and military power down to ensure West Germany stayed free.
For the most part....it was a five-star speech and didn't really change much of anything. We already had troops in Germany, and weren't planning any significant changes.
It was a speech to be a demonstration to the Germans. A five-star speech? Yeah, probably one of the ten best speeches of the century, without doubt. Short, to the point, and arousing to the crowd.
A repeat of the speech? President Obama could just repeat the words and leave it there. He could try to trump Kennedy's Berlin speech. He could simply lay out a bold new version of where the world should go.
The crowd? I'm of the mind if the weather cooperates (it's always a 50-50 thing on weather in June)....it could be a 500k person crowd. Put in bad weather? Figure closer to 250k. I'm one of those folks who ran remember a June bar-b-q from twenty years ago where it was too cold except around the fire itself to stand.
Will Gitmo matter? Well....most Germans know it's still an issue. The drone stuff? It's turning into a negative anchor right now. The Aghan war? Well....it's still going but there's an end to the mess in sight.
I anticipate that this will likely be the last swing through Germany for President Obama for the remaining four years, and he'll try to deliver a Kennedy-dramatic piece.
Sunday, February 3, 2013
More on the Check Guy
Over the past twenty-four hours....a little more has come out over the Iranian guy with the 54 million Euro check attempting to enter Germany.
The customs guys now say that the fine will be around one million Euro...more or less. After that....they don't care what he does.
The guy? Well, this starts to become interesting. He is Tahmasb Mazaheri. He was the head of the central bank of Iran for a period of about a year (around 2008, being relieved).
Based on commentary, there was a fair amount of difference between his vision of the central bank and that of the national leadership. The national leadership wanted significant sums of money shifted from the bank....to the nation's poor, to demonstrate that country was taking care of them. The act....if carried out...was summed up by Mazaheri as the trigger for creating massive inflation. If you look over the current trends in Tehran....Mazaheri was probably right about run-away inflation.
It would appear that over that brief year....he found various ways to shuffle money around, and deposit it in Venezuela, with a bank there. The check....is drawn upon that South American bank, not a bank in the Middle East.
His intentions? I'd now guess that he was seeking a way of hiding in Germany, and utilizing the money for himself and his family. He probably had an upscale house in mind....a body-guard or two....and just quietly exist in Europe.
Now? The Iranians would need to react fairly quickly on Monday and ask to stall his release. They might want to check out his various transactions and create some crime paperwork.
The guy? I'm guessing that he's begging the Germans at this point to allow him out, and to find a German bank here on Sunday....that would open and accept his check....pay the customs folks....and disappear immediately.
Staying in Germany? If I were the guy....I'd forget about this option. The Germans probably aren't going to agree to any visa deal. He'd best start looking for some Caribbean island where he can pretend to be some washed-up Bombay former movie star.
The customs guys now say that the fine will be around one million Euro...more or less. After that....they don't care what he does. The guy? Well, this starts to become interesting. He is Tahmasb Mazaheri. He was the head of the central bank of Iran for a period of about a year (around 2008, being relieved).
Based on commentary, there was a fair amount of difference between his vision of the central bank and that of the national leadership. The national leadership wanted significant sums of money shifted from the bank....to the nation's poor, to demonstrate that country was taking care of them. The act....if carried out...was summed up by Mazaheri as the trigger for creating massive inflation. If you look over the current trends in Tehran....Mazaheri was probably right about run-away inflation.
It would appear that over that brief year....he found various ways to shuffle money around, and deposit it in Venezuela, with a bank there. The check....is drawn upon that South American bank, not a bank in the Middle East.
His intentions? I'd now guess that he was seeking a way of hiding in Germany, and utilizing the money for himself and his family. He probably had an upscale house in mind....a body-guard or two....and just quietly exist in Europe.
Now? The Iranians would need to react fairly quickly on Monday and ask to stall his release. They might want to check out his various transactions and create some crime paperwork.
The guy? I'm guessing that he's begging the Germans at this point to allow him out, and to find a German bank here on Sunday....that would open and accept his check....pay the customs folks....and disappear immediately.
Staying in Germany? If I were the guy....I'd forget about this option. The Germans probably aren't going to agree to any visa deal. He'd best start looking for some Caribbean island where he can pretend to be some washed-up Bombay former movie star.
Saturday, February 2, 2013
The Check Guy
It's one of those odd stories that pop up in Germany once or twice a year and you doubt the story.
There's the Iranian guy....arriving at a German airport....and the customs guys ask if he has cash of 10k or more. The guy says no....at least in terms of cash....he was right.
But the customs guys go through his bags and eventually find this odd check. It's only a check. It's somewhere in the area of 54 million Euro. Course, there's some things. It's drawn on a Venezuelan bank, and it's in Venezuelan Bolivares.
The guy? Well...the cops say (mostly because the guy just won't talk much) that he came out of Iran, went through Turkey, and his final destination was Germany.
I'm guessing that the trick question of cash on hand was truthfully said by the guy....but the sad thing is that checks on you....even a cashiers check....counts as well. When the customs guys ask you....you just can't overlook that check you are carrying.
What was the guy up to? Well...I would make a guess that he was going to present the check to someone who was going to hold the check as a deposit for something. These days....depending on the bank you deal with....there might not be any limit to the period of validity for the check. You could give the check to some guy for five years....come back and reclaim the check for some reason, and the money would still be there.
How would you claim the actual physical cash? Well.....you'd have to walk into the Venezuelan bank where the money is held, present the check, and only then get the cash. An electronic transfer? My gut tells me that it'd be rare that someone would move all that cash electronically....to most western countries, because of tax issues.
Few people remember the Don Johnson story from around a dozen years ago. Don had flown into Germany on a private jet with a couple of guys....got into a limo, and was just about to cross the border into Switzerland when the German customs guys asked to check the car. Don was carrying over a billion dollars in bank checks. They didn't stop Don, but they photo-copied everything and sent the info onto the authorities. My humble guess is that once back into the states....Don met quietly with the IRS folks and identified each and every person that he was carrying checks for. You never heard a word about this.....ever again.
How many folks transit Germany with checks like this a year? I'd bet on fifty thousand individuals. Some are simply carrying a 100k Euro check which they will quietly use to buy an ice cream shop somewhere in Germany....and the guy doesn't want the German tax guys to confiscate any of the start-up money. How they got the money to start with....isn't of any concern.
The sad part of this story is that this guy was merely a courier for the check, and his boss won't be happy about this whole mess. He'll have to disappear and just hope Germany extends refugee status to him, and offers him a new identity.
There's the Iranian guy....arriving at a German airport....and the customs guys ask if he has cash of 10k or more. The guy says no....at least in terms of cash....he was right.
But the customs guys go through his bags and eventually find this odd check. It's only a check. It's somewhere in the area of 54 million Euro. Course, there's some things. It's drawn on a Venezuelan bank, and it's in Venezuelan Bolivares.
The guy? Well...the cops say (mostly because the guy just won't talk much) that he came out of Iran, went through Turkey, and his final destination was Germany.
I'm guessing that the trick question of cash on hand was truthfully said by the guy....but the sad thing is that checks on you....even a cashiers check....counts as well. When the customs guys ask you....you just can't overlook that check you are carrying.
What was the guy up to? Well...I would make a guess that he was going to present the check to someone who was going to hold the check as a deposit for something. These days....depending on the bank you deal with....there might not be any limit to the period of validity for the check. You could give the check to some guy for five years....come back and reclaim the check for some reason, and the money would still be there.
How would you claim the actual physical cash? Well.....you'd have to walk into the Venezuelan bank where the money is held, present the check, and only then get the cash. An electronic transfer? My gut tells me that it'd be rare that someone would move all that cash electronically....to most western countries, because of tax issues.
Few people remember the Don Johnson story from around a dozen years ago. Don had flown into Germany on a private jet with a couple of guys....got into a limo, and was just about to cross the border into Switzerland when the German customs guys asked to check the car. Don was carrying over a billion dollars in bank checks. They didn't stop Don, but they photo-copied everything and sent the info onto the authorities. My humble guess is that once back into the states....Don met quietly with the IRS folks and identified each and every person that he was carrying checks for. You never heard a word about this.....ever again.
How many folks transit Germany with checks like this a year? I'd bet on fifty thousand individuals. Some are simply carrying a 100k Euro check which they will quietly use to buy an ice cream shop somewhere in Germany....and the guy doesn't want the German tax guys to confiscate any of the start-up money. How they got the money to start with....isn't of any concern.
The sad part of this story is that this guy was merely a courier for the check, and his boss won't be happy about this whole mess. He'll have to disappear and just hope Germany extends refugee status to him, and offers him a new identity.
Friday, February 1, 2013
A Tax Discussion
Normally, I wouldn't ever discuss or bring up the far-left party as a topic. This week? They came out and said a part of their platform for the upcoming election.....is a 100-percent taxation on folks who make more than half-a-million Euro (roughly $650k a year). Anything after that amount of money.....you'd just lose the whole amount. Got a bonus from the bank for good work of one million, on top of your $499k Euro Salary? Well....the one million would just be entirely taken away.
Gut feeling? It won't really attract much interest in the election, if you ask me. The French and their 75-percent taxation deal has been getting rough treatment in most German papers and the news.
If you sat and around and reviewed things if they got real votes....it's bound to draw attention because you'd have to spend the money as you get it, and lots of various groups would demand more money for their projects.
But then, you'd start to notice folks packing up and moving out of Germany. So in the long-run....you'd lose more folks than make any money.
Germans have a pretty negative view of any changes on taxes these days. Doesn't matter if it affects the rich or middle-class....it's always drawing negative talk.
Gut feeling? It won't really attract much interest in the election, if you ask me. The French and their 75-percent taxation deal has been getting rough treatment in most German papers and the news.
If you sat and around and reviewed things if they got real votes....it's bound to draw attention because you'd have to spend the money as you get it, and lots of various groups would demand more money for their projects.
But then, you'd start to notice folks packing up and moving out of Germany. So in the long-run....you'd lose more folks than make any money.
Germans have a pretty negative view of any changes on taxes these days. Doesn't matter if it affects the rich or middle-class....it's always drawing negative talk.
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