German carmaker Daimler to introduce additional cost saving measures

Source: Xinhua | 2020-07-29

German car manufacturer Daimler plans to introduce additional cost saving measures in order to avoid the need to eliminate jobs as a result of the coronavirus pandemic, the company announced on Tuesday.

Daimler's management and General Works Council agreed to reduce paid working hours for employees in administration and production-related areas by two hours per week from October until September next year.

Daimler also said that all employees in administration and production would no longer be entitled to a bonus payment based on profits for the current year.

An annual premium that Daimler had introduced last year would now be "converted into mandatory paid time off for everyone," according to Daimler.

"This is the only way we will emerge from the crisis stronger and more secure, thus securing the future of the company and jobs," said Wilfried Porth, Daimler Board of Management member for human resources and director of labor relations.

According to Daimler, the agreed measures reflect the "special economic burden" caused by the COVID-19 pandemic and are meant to further secure employment.

"Nobody should feel threatened in their existence," said Michael Brecht, chairman of the General Works Council at Daimler, adding that employment at Daimler would remain secure until 2030. Brecht ruled out dismissals for operational reasons.