UPDATE 2-Daimler may cut work week at four German sites

Thu Nov 27, 2008 1:38pm EST
 
[-] Text [+]

* Berlin, Bremen, Duesseldorf and Sindelfingen affected

* Short weeks may last through April

* Company cannot say how many workers are affected

(Recasts, adds spokeswoman comment, writes through)

By Christiaan Hetzner;

FRANKFURT, Nov 27 (Reuters) - Roughly 50,000 Daimler AG (DAIGn.DE) staff face a shorter working week from January as slumping demand hits European carmakers.

The car and truck maker said on Thursday it would talk to unions about potentially reducing working hours at four German Mercedes-Benz assembly plants from the start of the year through the end of April, leaving the German federal labour agency to make up any wage shortfalls.

Carmakers across Europe and the United States are bearing the brunt of the economic downturn and their production cuts are being felt in other industries.

The world's largest steelmaker Arcelor Mittal (ISPA.AS) (MTP.PA) said it planned to cut up to 9,000 largely white collar jobs, around two thirds in Europe. [ID:nLR703451]

The world's largest chemicals maker by revenue BASF AG (BASF.DE) lowered its 2008 profit target for the second time in two months due in part to lower demand from the auto sector. A Daimler spokeswoman said the working week at the four plants would fall below the 30 hour threshold set out in its current union agreement but could not say how many employees would be affected since this hinged on talks with the unions.

According to data published by Daimler, at least 47,000 are employed at the four production sites in Sindelfingen, Berlin, Bremen and Duesseldorf where the measure could go into effect.

The state aid is designed to ensure employees can at least retain their jobs. This so-called "Kurzarbeit" can only be resorted to in emergency cases and is expected to be temporary.

Two of the sites build all types of Mercedes-Benz cars except for the A-Class and B-Class family of compacts and the larger R-Class and its sports utility vehicles like the GL-Class and M-Class. The latter three are made in the United States.

Berlin manufactures components such as engines, while Sprinter delivery vans roll off the assembly line in Dresden.

PRODUCTION CUT  Continued...

 
Kenneth Griffin, Founder, President and CEO, Citadel Investment Group LLC, speaks during the "Financial Recovery: When and How?" panel at the 2009 Milken Institute Global Conference in Beverly Hills, California April 27, 2009. REUTERS/Phil McCarten
Citadel enters the fray

Kenneth Griffin's powerful hedge fund has waded into the case of Goldman Sachs' purloined computer code, suing three of its former employees for setting up Teza Technologies.  Full Article | Full Coverage 

Join the Reuters Consumer Insight Panel and help us get to know you better

Join the Reuters Consumer Insight Panel and help us get to know you better