Daimler talks with workers heat up, with 15,000 jobs at risk

Daimler has reiterated that the company wanted to avoid forced redundancies, but for this to happen the carmaker needed to find alternative ways of cu
...
File photo: The works council for Daimler said on Monday it was aware of the seriousness of the situation. (REUTERS)
File photo: The works council for Daimler said on Monday it was aware of the seriousness of the situation.

Labour representatives at German carmaker Daimler said on Monday that discussions with management over cost cuts had become "rougher", after a board member said over the weekend that more than 15,000 jobs were at risk.

The auto industry has been hit hard by the coronavirus pandemic, which shut factories and showrooms forcing traditional carmakers to seek deeper cuts.

Daimler had already said in November, before the pandemic started, that it would cut at least 10,000 jobs worldwide over the following three years, following peers as they cut costs to invest in electric vehicles while grappling with weakening sales.

Also check these Vehicles

Find more Cars
Mercedes-benz Gle (HT Auto photo)
Engine Icon2999 cc FuelType IconMultiple
₹96.40 Lakhs - 1.15 Cr
Compare
View Offers
Mercedes-benz Glb (HT Auto photo)
Engine Icon1950.0 cc FuelType IconMultiple
₹ 63.80 - 69.80 Lakhs
Compare
View Offers
Mercedes-benz Eqb (HT Auto photo)
BatteryCapacity Icon66.4kWh Range Icon423 km
₹ 74.50 Lakhs
Compare
View Offers
Mercedes-benz Eqc (HT Auto photo)
BatteryCapacity Icon80 kWh Range Icon471 Km
₹ 1.07 Cr
Compare
Mercedes-benz Glc (HT Auto photo)
Engine Icon1999 cc FuelType IconPetrol
₹ 73.50 - 74.50 Lakhs
Compare
View Offers
Mercedes-benz Amg E53 (HT Auto photo)
Engine Icon2999.0 cc FuelType IconPetrol
₹ 1.02 Cr
Compare

The owner of the Mercedes-Benz brand had stuck with a pledge at the time to avoid forced redundancies at its German workforce until 2029.

Also Read : Daimler CEO faces disgruntled investor grilling over 'lost year'

Daimler board member Wilfried Porth told Stuttgarter Zeitung over the weekend, however, that more than 15,000 workers would now have to take a buyout or retire to avoid forced layoffs.

The works council for Daimler said on Monday it was aware of the seriousness of the situation.

"The tone of our discussion is getting rougher and is putting our cooperation to the test," it said.

Also Read : Daimler seeks to sell French car plant in cost-cutting drive

Daimler managed to come through a crisis in the past, the works council said, adding it had always found a way forward, and did not expect the situation to be any different this time around.

Daimler reiterated on Monday the company wanted to avoid forced redundancies, but for this to happen the carmaker needed to find alternative ways of cutting costs.

First Published Date: 13 Jul 2020, 18:35 PM IST
NEXT ARTICLE BEGINS

Check Latest Offers

Please provide your details to get Personalized Offers

Choose city
+91 | Choose city
Choose city

Want to get the best price for your existing car?

Powered by: Spinny Logo
By clicking "View Offers" you Agree to our Terms and Privacy Policy
Dear Name

Please verify your mobile number.

+91 | Choose city
Couldn't verify the OTP.
It's either expired or it's incorrect.