GERMANY: DAIMLER- CHRYSLER MANAGEMENT AGREE TO MAJOR COST CUTTING MEASURES TO GUARANTEE 6,000 JOBS AT MERCEDES

Record ID: 647462

  • Title: GERMANY: DAIMLER- CHRYSLER MANAGEMENT AGREE TO MAJOR COST CUTTING MEASURES TO GUARANTEE 6,000 JOBS AT MERCEDES
  • Date: 23rd July 2004
  • Summary: (U3) STUTTGART, GERMANY (JULY 23, 2004) (REUTERS) 1. WIDE OF ENTRANCE OF DAIMLER CHRYSLER HEADQUARTERS AND MEDIA OUTSIDE 0.05 2. CLOSE OF MERCEDES STAR BADGE 0.10 3. CLOSE OF SIGN READING DAIMLER CHRYSLER 0.15 4. SLV DAIMLER-CHRYSLER CEO JUERGEN SCHREMPP AND CFO JUERGEN HUBBERT ARRIVING AT PRESS CONFERENCE 0.23 5. SCU SCHREMPP 0.31 6. VARIOUS OF SCHREMPP , HUBBERT AND OTHER EXECUTIVES 0.42 7. SMV MEDIA 0.47 8. SIDE VIEW OF EXECUTIVES SITTING DOWN 0.52 9. SCU (SOUNDBITE) (German) JUERGEN SCHREMPP, SAYING: "To put it succinctly, there was the necessity of reducing our costs by 500 million euros per year. This goal was reached. So, the future product offensive of Mercedes is secure and in addition growth is possible. The agreement secures our German production facilities until 2012." 1.31 10. WIDE OF PRESS CONFERENCE 1.36 9. SCU (SOUNDBITE) (German) SCHREMPP, SAYING: "Ladies and gentlemen, I think this agreement is a model for Germany. It shows what is possible when the management and the employees' representatives sit down at one table and talk, and it was carried by the spirit of attempting to use every possibility given within the collective labour agreement." 2.01 10. WIDE OF MEDIA 2.06 11. SCU (SOUNDBITE) (German) SCHREMPP, SAYING: "I want to say clearly here that Germany does not need an across-the-board rule regarding work hours or a discussion about vacation days, holidays. The companies in Germany need more room to breathe, to be to be able to act according to the business situation, or in other words they need flexibility. If we want to move ahead here in Germany, with the people, then we need to have an agreement that helps both sides." 2.44 12. WIDE OF MEDIA 3.01 13. SCU SCHREMPP 2.55 14. WIDE OF PRESS CONFERENCE 3.01 15. SCU (SOUNDBITE) (German) ERICH KLEMM, HEAD OF DAIMLER-CHRYSLER WORKS COUNCIL, SAYING: "We found an agreement without interfering in the fundamentals of the collective labour agreement and I am happy and very proud of that." 3.14 16. WIDE OF PRESS CONFERENCE 3.20 Initials Script is copyright Reuters Limited. All rights reserved
  • Embargoed: 7th August 2004 13:00
  • Keywords:
  • Location: STUTTGART, GERMANY
  • Country: Germany
  • Reuters ID: LVAEN4F73J9TMYSSEP8J9SUE0LOH
  • Story Text: Workers and management at automaker DaimlerChrysler
    have agreed to major labour cost-cutting measures after
    protests by tens of thousands of workers in recent days.




    After sixteen hours of talk, the employees at
    Daimler Chrysler have accepted a 500 million-euro ($613
    million) reduction in annual staff costs and the company
    has guaranteed more than 6,000 jobs at the company's
    Mercedes brand.

    "To put it succinctly, there was the necessity of
    reducing our costs by 500 million euros per year. This goal
    was reached," said CEPO Juergen Schrempp at a press
    conference on Friday (July 23). "So, the future product
    offensive of Mercedes is secure and in addition growth is
    possible. The agreement secures our German production
    facilities until 2012."
    The agreement follows long talks between management,
    the company's works council and the IG Metall union, and
    puts on hold demonstrations at various Mercedes plants
    across the country planned for Friday morning.

    After days of failed bargaining, a stand-off between
    the company and workers had triggered intense debate in
    Germany over the high price of domestic labour during a
    time when many companies are outsourcing to low-wage
    regions to remain competitive.

    "I want to say clearly here that Germany does not need
    an across-the-board rule regarding work hours or a
    discussion about vacation days or holidays," Schrempp said.

    "The companies in Germany need more room to breathe, to be
    able to act according to the business situation, or in
    other words they need flexibility. If we want to move ahead
    here in Germany, with the people, then we need to have an
    agreement that helps both sides."
    Last week, over 60,000 workers took part in a day of
    marches to protest against management's threats to cut
    6,000 jobs at Mercedes' Sindelfingen plant if they did not
    agree to company demands.

    In an attempt to defuse the situation, the company had
    said its management board offered to accept lower pay too.

    IG Metall itself needs to appear to have wrestled out
    important concessions from management if the union wants to
    stem a steady loss of members and retain considerable
    influence.



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