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Daimler Reaches Labor Deal to Trim S-Class Output
Daimler AG has suspended one of two shifts at its car plant in Sindelfingen, Germany, until next summer, under a new agreement with its unions.
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Daimler AG has suspended one of two shifts at its car plant in Sindelfingen, Germany, until next summer, under a new agreement with its unions.
The company says the cutback at the assembly line that makes the Mercedes-Benz S-Class fullsize sedan will reduce output by 8,000 units in the fourth quarter of this year.
The unions won their fight to let workers alternate weekly between morning and afternoon shifts. Daimler had sought to save money by operating the factory only on its morning shift.
Employees displaced by the shift elimination will be transferred to the Sindelfingen assembly line that builds the Mercedes C-Class car. Those workers are slated to return to their regular jobs when production of the next-generation S-Class begins in mid-2013.
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