Daimler Truck Defies Union Opposition with Job Cuts
Economy / Finance

Daimler Truck Defies Union Opposition with Job Cuts

Daimler Truck’s Chairwoman, Karin Radström, is maintaining her plans to reduce 5,000 jobs in Germany, despite significant opposition from the company’s works council. Radström defended the job cuts in an interview with “Handelsblatt”, stating they are necessary to enhance the attractiveness of the company’s products for customers and that proactive measures are preferable to delaying them until the future.

The announcement of the planned cuts has drawn a sharp response from employee representatives. Bruno Buschbacher, head of the works council at the Mannheim plant, characterized the plans as a “blow to the face” for the workforce. Michael Brecht, chair of the Group Works Council, expressed concerns regarding a breach of agreements, a loss of trust and a lack of transparency in the process.

Radström emphasized that Daimler Truck remains fully committed to its German operations. “We are not withdrawing from Germany; on the contrary” she stated. The company currently employs 30,000 people across multiple locations including Ulm, Stuttgart, Gaggenau, Wörth, Kassel, Mannheim and Berlin and there are no current intentions to abandon any of these sites.

Addressing speculation regarding potential production shifts to Turkey, Radström acknowledged the country’s potential but clarified that no decision has been made. The move is part of the broader “Cost Down Europe” program, designed to increase the company’s return on sales to 12 percent. Daimler Truck achieved a barely nine percent operating profit based on industrial business revenues in 2024.