Daimler works council warns of cuts within the workforce

Munich At automotive maker Daimler, new cuts are imminent. Barely half a 12 months after the Dax group determined to chop as much as 15,000 of its 300,000 jobs worldwide, the Mercedes producer seems to be compelled to tighten its austerity measures because of the corona disaster.

“Relying on how the demand for our merchandise develops, it can’t be dominated out that the personnel measures, relying on location and performance, might also prolong to the manufacturing areas,” warned Daimler works council chief Michael Brecht and his deputy Ergun Lümali on Thursday in a single go inner leaflet. The four-page letter is out there to the Handelsblatt. A Daimler spokesman declined to remark.

The employees’ leaders emphasize that it’s not but clear how large the consequences of the pandemic will probably be on the present effectivity applications. On the identical time, preparations are being made for talks on financial savings with administration. As a result of the stress on Daimler is “monumental and continues to extend,” mentioned Brecht and Lümali.

Within the first quarter alone, Daimler’s passenger automotive gross sales plummeted 15 %, that of vehicles and buses by as a lot as a fifth. The Stuttgart firm was barely in a position to forestall a loss within the first three enterprise months, however the free money movement was already clearly adverse.

“The stability sheets of the second quarter will relentlessly disclose how badly the corona shock will have an effect on us economically,” the works councils at the moment are warning and elevating the alarm: “Even when short-time working will lower once more, the Government Board intends to cut back the mounted prices and procedures to alter. That’s the reason the board desires to get to the buildings. ”

Three central initiatives within the company restructuring

Accordingly, the administration round CEO Ola Källenius desires to barter with the workers about three central initiatives. First, the Swabians need to considerably streamline their IT processes below the motto “Twice as Quick”. It’s due to this fact deliberate to outsource important service features to exterior firms by mid-2021. “A complete of two,000 staff worldwide, together with virtually 900 in Germany, are to be transferred to those exterior firms by way of a switch of enterprise,” write Brecht and Lümali.

Second, the carmaker plans to streamline its group construction, which was solely revised final 12 months, with three separate divisions – vehicles, vehicles, and mobility providers. Particularly, Daimler AG as a holding firm with its 6,000 staff is to be trimmed down. “There are at the moment concerns to maneuver administrative and central areas from Daimler AG to the division firms”, the worker representatives clarify of their round.

Daimler boss Ola Källenius

From the Scandinavian’s standpoint, Covid-19 has nothing lower than “uncovered the Achilles heel of the auto trade”.

(Photograph: dpa)

Because the Handelsblatt had already reported in April, CFO Wilhelm plans to merge his 1200 staff within the holding firm with the Mercedes automotive division, which employs 5,000 financiers. In response to insiders, that is additionally based mostly on the concept of ​​more and more separating Daimler Truck AG with the intention to present a greater foundation for a doable IPO of the division in just a few years.

Third, in line with the works councils, Daimler is checking whether or not administrative actions may be bundled in elements of human sources and finance. “There are additionally concepts for changing partial scopes into GmbH buildings. The implications could be a discount in personnel or additional enterprise transfers, ”warn Brecht and Lümali.

The 2 employees’ leaders are asking Daimler boss Källenius to current binding pictures of the longer term for the person places. “The large image must be on the desk – it is all about the entire thing.” The works councils need to know: “What’s going to our widespread future aim be? How is the journey going? ”

The trade is in disaster

Many staff are very unsettled. The works councils have fashioned a negotiating group on the three core initiatives of the Administration Board. “Solely transferring organizational charts prices some huge cash, with unclear advantages”, they clarify their place as a precaution. The staff count on a “clear street map” from the board and no selections which might be made “head over heels”.

The administration staff has lengthy been discussing capability cuts. “Within the medium time period, we now have to cut back our capacities by ten to 20 % so as to have the ability to make the most of the vegetation to full capability. China is the one exception, ”says a supervisor. One other supervisor added that it was “inherently essential” to broaden the financial savings targets shortly.

The background is that the expansion prospects of all the auto trade have been obscured by Corona. Firstly of the 12 months, the trade had calculated a quantity of 90 million vehicles and lightweight industrial automobiles bought worldwide by 2020, most automobile producers and suppliers now count on solely 70 million items by the top of the 12 months. All firms should due to this fact at the moment put together for considerably falling numbers.

The result’s “Darwinism” within the trade, the administration consultancy Alix Companions states in a research and predicts a tricky choice. “Solely the financially robust and revolutionary producers and suppliers survive the upcoming market shakeout.”

The automotive trade as a complete “will most likely not make any earnings this 12 months,” believes Elmar Kades, head of the automotive division at Alix Companions. Gross sales in Europe are prone to attain the pre-crisis degree solely in 5 years’ time.

Daimler CEO Källenius has additionally issued the maxim internally: “Margin comes first.” He desires to kind out fashions that hardly generated any returns and scale back the variance in engines. From the Scandinavian’s standpoint, Covid-19 has nothing lower than “uncovered the Achilles heel of the auto trade”. Lengthy growth cycles and extreme mounted prices would make the trade susceptible.

A couple of weeks in the past, he coolly concluded: “We now have to behave.” Källenius may quickly observe up on these bulletins. In any case, he has scheduled a gathering along with his high managers for the top of the month, it’s mentioned in unison in company circles.

Extra: Dim prospects: The scenario within the automotive trade is critical

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