“The pressure is enormous and continues to rise”

The Daimler employee representatives prepare the workforce for difficult times. The economic situation will worsen, even if short-time work is reduced again.

The Daimler star is likely to lose some of its shine in the future.

Dhe Daimler works council is demanding a clear roadmap from the Board of Management on how to overcome the crisis. “The big picture has to be on the table – it’s about the whole thing,” says the newsletter to the staff. While the Daimler management has so far held back with statements about the consequences of the Corona crisis, the general works council is preparing the employees for difficult times: “No sales, no turnover. The balance sheet for the second quarter will relentlessly reveal how badly the corona shock will hit us economically, “warned General Works Council Chairman Michael Brecht and his deputy Ergun Lümali in the letter, which is viewed as a substitute for works meetings that are not possible due to the pandemic.

The economic situation will worsen even if short-time work is reduced again. “Depending on how the demand for our products develops, it cannot be ruled out that the personnel measures may also have an impact on the production areas,” the letter says: “The pressure is enormous and continues to rise.”

Against this background, there is speculation about how high the downsizing could be. In addition to the 10,000 job cuts already decided at Daimler by the end of next year, the Board of Management is planning to cut another 10,000 jobs by the middle of the decade, according to an article in the trade journal “Automobilwoche”, citing unspecified “company sources”.

“The transformation can only succeed with a master plan”

Daimler does not comment on this, only points out that they have never named a specific number of job cuts. In a round with journalists, HR director Wilfried Porth spoke only roughly about a “five-digit number”. Ola Källenius, who also heads Daimler and the Mercedes passenger car division, answered specific questions evasively.

With three projects currently being negotiated with the works council, a major downsizing is already foreseeable. This involves relocating parts of IT with 2,000 employees to external companies, outsourcing parts of the human resources and finance department and reviewing the holding structure, which was only implemented last autumn. In all of this, the works council emphasizes in the newsletter to the workforce, the “future security 2030” applies, which excludes compulsory layoffs in the German group companies. “The transformation that is so important to us can only succeed together with the employees, with a master plan in their pocket.”