Mercedes-Benz Cuts Temporary Workforce In Germany

Mercedes-Benz plans to cut thousands of temporary jobs in Germany as part of its cost-cutting program, business newspaper Handelsblatt reported, citing company sources.

The cuts would affect “several thousand” temporary workers, according to the report.

A Mercedes-Benz spokeswoman declined to comment on specific plans, but emphasized that the temporary workers complement the company’s permanent workforce, but do not replace it.

According to Handelsblatt, around 3,000 temporary workers are employed at the German carmaker’s plants in Sindelfingen near Stuttgart, Bremen and Rastatt in the southwest.

Temporary workers are usually among the first to lose their jobs during economic downturns, as companies try to cut costs by not renewing fixed-term contracts. However, during periods of growth, many are offered permanent jobs.

New severance pay program

Mercedes-Benz recently ramped up its cost-cutting efforts, announcing a “productivity offensive for Germany” that sparked a debate over labor costs.

In a letter to employees in Germany, management proposed several measures, including longer working hours for the same pay.

The company’s works council and the IG Metall union opposed the proposed cuts.

Mercedes-Benz also plans to restart its employee severance program in Germany, with the scheme expected to begin in December, the automaker announced in late September.

The management is not currently considering reducing the number of permanent employees, which is covered by the contract on job security valid until the end of 2034.

According to Handelsblatt, Mercedes-Benz aims to save 800 million euros ($895 million) a year in Germany through its productivity initiative.

• See More: Mercedes Claims That SUV Coupe Models Are Here To Stay