DaimlerChrysler workers agree cost cuts :: Namibia Internet Gateway cc ::

Articles: DaimlerChrysler workers agree cost cuts

Posted by admin on Friday, July 23, 2004 - 12:48 AM

Workers and management at DaimlerChrysler have agreed to major cuts in labour costs after protests by tens of thousands of workers in recent days.
Employees accepted a 500 million euro (332 million pound) reduction in annual staff costs and the company guaranteed more than 6,000 jobs at the company's Mercedes brand. "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 on Friday. He said the group will make up production lost during recent weeks. The accord followed 16 hours of talks between management, the company's works council and the IG Metall union, and puts on hold demonstrations in Mercedes plants across the country planned for Friday morning. After days of failed bargaining, a stand-off between the company and workers had triggered intense debate in Germany over the high price of domestic labour at a time when many companies are outsourcing to low-wage regions to remain competitive. Last week, more than 60,000 workers took part in a day of marches to protest against management threats to cut 6,000 jobs at Mercedes' Sindelfingen plant if the workers did not agree to company demands. In an attempt to defuse the situation, the company had said its management board offered to accept lower pay too. IG Metall itself needs to appear to have at least wrestled out important concessions from management if the union wants to stem a steady loss of members and retain considerable influence.

· 697 Reads ·