December 22, 2015 / 5:13 PM / 2 years ago

Porsche plant workers agree to less pay to produce electric car

A logo is seen on a wheel of a Porsche car during the company's annual meeting in Stuttgard, Germany, May 13, 2015.Ralph Orlowski

BERLIN (Reuters) - Porsche (VOWG_p.DE) workers have agreed to concessions worth several hundred million euros to secure production of an all-electric sports car at the manufacturer's biggest plant, a spokesman for the company said.

The Volkswagen-owned manufacturer said earlier this month it would spend about 1 billion euros ($1.10 billion) at its base in Zuffenhausen and create more than 1,000 jobs there to build the battery-powered "Mission E" model.

But wage costs of the 13,000 workers employed at Zuffenhausen exceed those at Porsche's other German factory in Leipzig and at a VW plant in Osnabrueck where Porsche's Cayman and Cayenne models are assembled, a source at Porsche said.

"Employer and employees have jointly drawn up measures that have led to the decision of producing the Mission E model at Zuffenhausen," a spokesman for Porsche said on Tuesday, confirming a report by German magazine Automobilwoche.

Cost-cutting measures agreed between workers at Zuffenhausen and management include steps to raise the workweek to 35 hours from 34 and to drop parts of a pay increase between 2016 and 2025, the magazine said. Porsche declined comment on details of the measures.

Porsche's works council did not return calls seeking comment.

Reporting by Andreas Cremer, editing by David Evans

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