The Transfer Company – Public Subsidy for Staff-adjustment Measures

All businesses face considerable problems concerning measures to reduce staff numbers. From the company’s perspective, these measures are often inevitable, with no alternative. From the point of view of the unions and works councils, they often appear to be a decision on the part of the company that is difficult to understand. The measures lead to the loss of jobs and, hence, people’s livelihoods. Worse still, those affected feel it is an affront and an imposition and is all but unbearable. Against this backdrop, measures to reduce staff numbers are often associated with serious operational conflicts.

In this situation, transfer companies can help because they make a contribution, on the one hand, to avoiding unemployment for those affected by it (or at least delay it considerably), as well as giving those affected new perspectives and helping them find jobs. On the other hand, the transfer company (Transfergesellschaft) makes it possible for firms reducing staff levels to fulfil their social responsibility while significantly increasing the money available for reducing the economic disadvantages associated with the addition of public subsidies.