News and Document archive source
copyrighted material disclaimer at bottom of page

NewsMinecabal-eliteeuropean-unionamericanizing — Viewing Item

Daimler cuts perks to save jobs { July 23 2004 }

Original Source Link: (May no longer be active)

Daimler cuts perks, saves jobs
Employees at the carmaker will work longer hours, sacrifice benefits to secure 6,000 German jobs.
July 23, 2004: 6:55 AM EDT

STUTTGART, Germany (Reuters) - Employees at carmaker DaimlerChrysler agreed Friday to work longer hours and give up perks to secure 6,000 jobs in Germany in a deal that will save 500 million ($613 million) a year from 2007.

German Chancellor Gerhard Schroeder greeted DaimlerChrysler's agreement with the IG Metall union as "a victory for common sense" that would strengthen Germany's economic recovery and set a precedent for talks at rival car maker Volkswagen

"I am certain that after DaimlerChrysler the negotiations at Volkswagen over cost cuts and job security will lead to a successful agreement," Schroeder, who is on holiday in Italy, said in a statement.

DaimlerChrysler said the deal, struck after weeks of talks that saw output disrupted during protests by employees, would help luxury unit Mercedes to grow profitably and guarantee production in Germany until 2012.

"The agreement sets the course for increased productivity and efficiency and so strengthens the long-term competitiveness of the Mercedes car group," Mercedes chief Juergen Hubbert said, adding the group would make up production lost.

DaimlerChrysler (DCX: Research, Estimates) shares rose to 36.48 in morning trading in Germany, slightly outperforming the Dow Jones Stoxx European autos index.

The accord followed 16 hours of talks between management, the company's works council and IG Metall, and heads off the threat of further demonstrations planned at Mercedes plants across the country for Friday.

Management absorbs some pain
Over 60,000 employees took part in nationwide protests last week, incensed that they were being asked to make sacrifices while senior DaimlerChrysler management appeared untouched by the group's problems at Chrysler in the United States and its Japanese partner, Mitsubishi.

In a conciliatory gesture, DaimlerChrysler's management board agreed to take a cut of 10 percent in overall remuneration, while 3,000 managers in Germany will also have their packages reduced as part of the cost-cutting program.

The dispute centered on DaimlerChrysler's home state of Baden-Wuerttemberg, where workers enjoyed better terms and conditions than at other plants in Germany.

Mercedes had threatened to move production of the new version of its C-class saloon from Sindelfingen, near the group's Stuttgart headquarters, to works at Bremen in northern Germany and East London in South Africa, threatening 6,000 jobs.

The deal includes a 50 percent cut in hourly breaks enjoyed by workers in Baden-Wuerttemberg and the implementation of a 40-hour working week in all development and planning departments.

It will also see the introduction of a single pay structure for production and office staff and greater flexibility in adjusting employment levels by assigning young skilled workers and temporary workers to an internal employment agency.

The carmaker's productivity plan follows a similar move by manufacturing and technology giant Siemens AG, which recently won employee agreement to increase working hours at two German works without extra pay.


Copyright 2004 Reuters All rights reserved.

America dressed like swedish police with hoods take egyptians { July 25 2004 }
Amnesty criticises EU states for violating human rights
Bush slams europe agriculture policy { May 21 2003 }
Cleric says EU is US puppet { March 10 2006 }
Daimler cuts perks to save jobs { July 23 2004 }
EU ban lifted on genetically modified foods
Eu colluded on rendition flights { June 7 2006 }
Eu regulates noise pollution in crowded cities
Eu rethinks kyoto treaty
Eu rising superpower overtake america says beijing
EU says europeans are getting fatter { May 30 2007 }
EU seeks to widen fight against terrorism
Eu terror chief protects cia prisons { April 21 2006 }
Europe joins united states domination plans { February 23 2004 }
Europe looks inward tilts to right { November 20 2006 }
European commission authorities raid intel on antitrust
European constitution supported by business elite { May 31 2005 }
European nations purposely insult muslim profit { February 1 2006 }
Europeans eating like americans
France bans citizens reporting violence { February 2007 }
France tries to privatize power { June 17 2004 }
French bill would weaken transit union strikes { July 17 2007 }
French chirac kiss condoleezza rice { February 2006 } [jpg]
French increase hours in workweek { March 22 2005 }
French president loves bush america { November 7 2007 }
French protest loss of pensions wages { October 2007 }
French protest new labor law { February 2006 }
French working class hurt economy with 10perc unemployment
German labor unions losing power and influence { January 30 2007 }
German unions strengh dismantled { May 29 2007 }
Germans OK longer work hours to save jobs
Germany forces woman into prostitution or removes benefits
Greek socialists concede election defeat { March 7 2004 }
Half of europe fat { January 2006 }
Illegal drugs cheaper in europe than ever before
Legislation helps french work longer hours { July 12 2007 }
Massive protests over pension cuts { April 5 2004 }
Million christians sign EU religious plea
Million french protest against youth job law
Monsanto sees seeds of food revolution in europe { March 19 2004 }
New french law celebrates early colonianism
Paris bans protests ahead of bush visit { June 2 2004 }
Socialists ruled out for eurpoean president { March 4 2004 }
Socialists swept from power in greece { March 8 2004 }
Spain last to lose siesta as put on global work day { April 23 2006 }
Students protest labor law { February 2006 } [jpg]
Tuition fees hitting europe campuses { October 13 2003 }
Two hundred thousand french protest working conditions
US attacks eu liberals with oil for food scandal
Us style corporate governance plan for europe
Woekrs in britain stage mass strike { March 29 2006 }

Files Listed: 51


CIA FOIA Archive

National Security
Support one-state solution for Israel and Palestine Tea Party bumper stickers JFK for Dummies, The Assassination made simple