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Mercedes Trying Thumb Screws To Make Workers Accept Drastic Cuts

Longer working hours, reduction of production costs, potential closing of production sites in Germany, an option for building up production outside Germany—these are the proposals with which the executive board of Mercedes is intimidating its workers. The board demands that employees work five hours per week longer in the future—without compensation. In addition, all components of compensation and special payments are reportedly under review, including Christmas bonuses and vacation pay.

According to insiders with whom Wirtschaftswoche spoke, a Mercedes executive is said to have told several work council members that a new plant would be built in Eastern Europe if the employees did not help to significantly reduce labor costs in Germany. In that case, a German production plant would be unnecessary—for instance, plants that supply components to production sites like the ones in Untertürkheim and Hamburg.

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