According to reports from “Handelsblatt”, citing sources close to the company, Mercedes-Benz intends to reduce the number of temporary workers in Germany as part of its cost-cutting program. Currently, approximately 3,000 temporary employees work in the manufacturing plants in Sindelfingen, Stuttgart, Bremen, and Rastatt, Baden-Württemberg. The corporation did not comment on the plans when contacted, but a spokesperson indicated that the company employs “a few thousand” temporary workers.
The management’s objective is to lower labor costs across Germany. This reduction would be achieved partly by requiring employees to work unpaid overtime. Furthermore, the company plans to cut or eliminate special bonuses, including Christmas and vacation pay, as well as the annual profit-sharing payments.
The company’s works council and the IG Metall union are actively opposing these proposed reductions. While the management is moving forward with these measures, it stated that there are currently no plans to reduce the core permanent workforce. The company benefits from favorable demographics, as approximately 20 percent of its staff are scheduled to retire over the next decade. According to the “Handelsblatt’s” report, these cost-saving measures are expected to yield annual savings of 800 million euros in Germany, which could increase the company’s profit margin by nearly one percentage point.
