Much recently Daimler announced that it will use natural fluctuation to reduce jobs due to its. Daimler has also confirmed that the ‘Key Points Agreement’ will be further developed with employee representatives in the forthcoming weeks.
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Daimler and General Works Council (an organisation which represents workers that function at a local level and complements national labour negotiations) have mutually agreed upon a few key points to streamline a Group structure to increase efficiency and flexibility of workers.
The company also aims to cut jobs worth a whopping 1.4 billion Euros or ₹ 11,068 crores by 2022 and, Eventually to reduce the number of its worldwide management positions by 10%.
Daimler seems to cut these thousands of jobs worldwide by the end of 2022; but have also agreed on job protection in Germany until 2029 – which was promised by Daimler and eventually agreed upon in the spin-off of Mercedes-Benz Cars & Vans and Daimler Trucks & Buses – stays untouched for Daimler, Mercedes-Benz and Daimler Truck.
Mercedes’s parent company also plans to use these measures to reduce costs and employment in a much more socially responsible manner, Daimler is also looking into possibilities to expand their part-time retirements and a severance program in Germany to reduce jobs in the administration.
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The company also announced in November that it would also launch a programme to increase competition, investment strength and innovation. As part of streamlining and rightsizing the company, it has also offered to reduce the weekly working time of the existing workforce by almost 20%. Daimler also tends on extending the already expiring contracts for temporary workers in a very restrictive manner, and will also be very restrictive in allowing 40hr per week contracts for permanent employees as well.
Wilfried Porth, member of the board of management of Daimler, Human Resources, Labour Director and Mercedes-Benz Vans said, “With the key points we now agreed with the works council to maintain a smooth flow in the company, we can achieve these goals by the end of 2022. We will try our best to make these measures as socially responsible as possible.”0