Labour representatives at German automaker Daimler stated on Monday that discussions with management over cost reductions had become “rougher” after a board member said over the weekend that over 15,000 jobs were at risk.
The auto industry has been having a hard time due to the coronavirus crisis, over which governments and automakers had to shut factories and showrooms forcing traditional automakers to seek deeper cuts.
Daimler had already said in November, before the beginning of the pandemic, that it would cut at least 10,000 jobs globally over the following three years, noting the example created by the rivals who are cutting costs to invest in electric vehicles while also dealing with the decline in sales.
Daimler had stuck with a pledge at the time to prevent forced redundancies at its German workforce until 2029.
Daimler board member Wilfried Porth informed Stuttgarter Zeitung over the weekend, however, that over 15,000 workers would now have to take a buyout or take retirement to avoid forced layoffs.
The works council for Daimler stated on Monday it was aware of the seriousness of the situation.
“The tone of our discussion is getting rougher and is putting our cooperation to the test,” it stated.
Daimler managed to come through a crisis before as well, the works council said, adding it had always discovered a way forward, and did not expect the situation to be any different than the current times.
Daimler reiterated on Monday the company aimed to avoid forced redundancies, but for this to happen the automaker was required to find alternative ways of slashing costs.
