Mercedes-Benz threatened to close a plant in Germany and relocate production
Kyiv • UNN
Mercedes-Benz is demanding cost cuts at its German plants and a review of benefits. Otherwise, production could be relocated to Eastern Europe.
Mercedes-Benz management warned that it plans to close one of its plants in Germany and move production to Eastern Europe if employees do not agree to cost-cutting measures. Wirtschaftswoche reports this, citing company sources, with UNN reporting, citing Bild.
Details
According to the publication, management is demanding that employees give up some benefits, including vacation pay and Christmas bonuses, as well as reconsider the 35-hour workweek. Management believes that current conditions are making German plants less competitive amid declining sales, particularly in China.
As Wirtschaftswoche writes, one member of the management board stated directly: either labor costs in Germany will fall significantly, or Mercedes may build a new plant in Eastern Europe. The company's works council is already calling such statements "blackmail" and an "extreme threat."
The specific plant that may face closure has not yet been identified. Mercedes is actively expanding production in Hungary: in the future, the plant in Kecskemét is expected to produce up to 400,000 vehicles a year. Company management had previously warned that the capacity of German plants significantly exceeds demand.
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