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Daimler Tangles with German Workers About Shift Cut
Daimler AG has reached a stalemate in talks with unions about eliminating one of two shifts at its Mercedes-Benz car plant in Sindelfingen, Germany, Bloomberg News reports.
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Daimler AG has reached a stalemate in talks with unions about eliminating one of two shifts at its Mercedes-Benz car plant in Sindelfingen, Germany, Bloomberg News reports.
Erich Klemm, head of Daimler's works council, warns that the parties may be forced into arbitration for the first time in more than 40 years.
The union wants production of the S-Class flagship sedan at Sindelfingen to alternate weekly between early and late shifts, according to Bloomberg.
Daimler tells the news service it seeks to operate the plant only on the early shift, thus avoiding an 11% premium paid to workers on the late shift. That plan also would enable Daimler to retool the factory in the afternoon for the next-generation S-Class due next year.
Daimler aims to prune a reported €2 billion in costs at its Mercedes-Benz Cars unit under its new "Fit for Leadership Initiative." The company lowered its 2012 outlook for the car business last month to an unspecified decline in operating profit from €5.2 billion in 2011.
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