Key points to secure employment and profitability

July 28, 2020 - Following intensive discussions, Daimler and the General Works Council agreed on key points for reducing personnel costs in Germany. The agreed measures reflect the special economic burden of the corona pandemic and to further secure employment.

The key measures are:

  • The workweek for Daimler employees in administration and production-related areas will, in general, be reduced by two hours from October 1, 2020 to September 30, 2021 without compensation.
  • For all employees in administration and production the profit-sharing bonus for thebusiness year 2020 will be omitted.
  • Obligatory for all, as well, the tariff additional bonus 2021 (“Tarifliches Zusatzgeld”)will be converted into paid days off.

The details on the implementation of the key points of the agreement will be elaborated with the employee representatives in the coming weeks. The agreement applies to all employees of Daimler AG, Mercedes-Benz AG, Daimler Truck AG, Daimler Brand & IP Management GmbH & Co. KG as well as Daimler Gastronomie GmbH in Germany.

We thank our employees for their important temporary contribution to overcoming this crisis together. In addition, it is important to continue to tackle and solve the long-term structural issues together. This is the only way to get out of the crisis stronger and safe and thus secure the future of the company and jobs.

Wilfried Porth, Member of the Board of Management of Daimler AG, Human Resources and Labour Director

We are meeting our promise of limiting the period of uncertainty about job security as far as possible. The points agreed are a significant contribution to secure employment and to stabilize our financial position. Nobody should feel that their livelihood is under threat. Even more: employment at Daimler remains safeguarded until 2030 and compulsory redundancies remain excluded!

Michael Brecht, Chairman of the General Works Council, Daimler AG

With these additional measures, the company is responding to the intensification of the economic environment caused by the corona pandemic. In December 2019, company management and the General Works Council agreed in a General Works Agreement on measures to cut costs and reduce jobs in a socially responsible manner in order to streamline the corporate structure and thus increase efficiency and flexibility. The aim is to reduce staff costs by at least € 1.4 billion by the end of 2022. Daimler will, among other things, use natural fluctuation to reduce jobs. In addition, the possibilities for part-time retirement are expanded and a severance program started in Germany in order to reduce jobs in the administration. All measures require the agreement of both sides (company and employee).

This page contains forward-looking statements.

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