8,000 Mercedes employees to lose their jobs
Satch
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Daimler Chrysler and their German Works Councils struck a deal only last year running to 2011. That guaranteed no workers in the German plants would be laid off in exchange for changes that were supposed to generate Euro500m p.a. cost savings from 2007.
So any job cuts would have expensive payoffs attached and be a real political nightmare. If they have the guts for that, good on them.
The agreement covered about 160,000 staff on the German payroll whilst the group employes 385,000 globally. So if they bottle out maybe the depressing trick a number of big German groups have been playing recently could be seen again.
Lay off your non German workers and shift functions back to Germany which solves very little, just delays having to sort out the German problems
So any job cuts would have expensive payoffs attached and be a real political nightmare. If they have the guts for that, good on them.
The agreement covered about 160,000 staff on the German payroll whilst the group employes 385,000 globally. So if they bottle out maybe the depressing trick a number of big German groups have been playing recently could be seen again.
Lay off your non German workers and shift functions back to Germany which solves very little, just delays having to sort out the German problems
saorbust
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Only a problem if they have to cut jobs outside of VR, as the article says.
Personally I think they'd cover that thru natural turnover in the course of a year anyway with a workforce that size.
Personally I think they'd cover that thru natural turnover in the course of a year anyway with a workforce that size.
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