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Daimler to Streamline Structure to Increase Efficiency

Auto News - Published on Tue, 03 Dec 2019

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Daimler and the General Works Council have agreed on key points in order to streamline the Group structure and thus increase efficiency and flexibility. Therefore, measures to reduce costs and employment in a socially responsible manner have jointly been agreed upon. Daimler will, among other things, use natural fluctuation to reduce jobs. In addition, the possibilities for part-time retirement will be expanded and a severance program will be offered in Germany in order to reduce jobs in the administration. The implementation of this Key Points Agreement will be further developed with employee representatives in the coming weeks. Daimler aims to cut thousands of jobs worldwide by the end of 2022. The agreed job protection in Germany until the end of 2029, which was promised and agreed upon in the spin-off of Mercedes-Benz Cars & Vans and Daimler Trucks & Buses, stays untouched for Daimler AG, Mercedes-Benz AG and Daimler Truck AG.

The automotive industry is in the middle of the biggest transformation in its history. The development towards CO2-neutral mobility requires large investments, which is why Daimler announced in the middle of November that it would launch a programme to increase competitiveness, innovation and investment strength. Part of this programme is to reduce staff costs by around € 1.4 billion by the end of 2022 and, among other things, to reduce the number of management positions worldwide by ten percent.

In addition to the measures to streamline and rightsize the company, Daimler and the employee representatives also agreed to reduce further staff costs. Among other things, there will be offers to the workforce to reduce weekly working time. The company will extend expiring contracts for temporary workers in the administration very restrictively and will also be very restrictive in allowing 40-hour contracts for permanent employees.

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Posted By : Rabi Wangkhem on Tue, 03 Dec 2019
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