Management of the truck manufacturing company allegedly betrayed trust, according to the works council.
In a significant move, Daimler Truck, one of the world's leading commercial vehicle manufacturers, has announced plans to eliminate approximately 5,000 positions in Germany by 2030 as part of its "Cost Down Europe" program. The initiative aims to reduce recurring annual costs by over €1 billion by 2030 [1][2].
The job reductions will be achieved primarily through natural attrition, partial retirement, and voluntary severance programs, ensuring that there are no compulsory redundancies. This approach has been agreed upon with the general works council to improve efficiency and create future perspectives for the locations in Germany [1][2].
The works council has secured a commitment from Daimler Truck to avoid compulsory redundancies until the end of 2034, aligning with a socially responsible manner of implementing the job cuts [1][2]. Michael Brecht, the overall works council chief, has not made specific statements regarding this matter in the available sources [1][2].
The restructuring is part of a broader strategic shift by Daimler Truck, which includes expanding into high-margin areas like defense and zero-emission trucking, while optimising operations in other sectors [3]. The company's sites in Gaggenau, Kassel, Mannheim, Stuttgart, and Wörth am Rhein will be affected, with changes impacting administration, development, sales, and production [2].
Carmen Kiltzsch-Müller, works council chairperson for the "Stuttgart plant", has expressed sensitivity towards the job cuts announcement due to her location being affected. The extension of job security rules out dismissals for operational reasons at German locations until the end of 2034, and also includes an expanded say for the works council and the fulfillment of the demand for an internal job exchange in the context of job cuts [1].
Daimler Truck's management under CEO Karin Radström was praised for a constructive and goal-oriented approach in May. However, uncertainty has returned to headquarters due to the uncoordinated move of management leaving the agreed path. Radström admitted for the first time at the capital market day in the US that 5,000 jobs must be cut in the truck division due to cost targets [2].
Despite the crisis, Daimler Truck continues to achieve solid profits. The "Cost Down Euro" cost-cutting program worth one billion euros includes the planned job cuts of 5,000 in Germany. The joint plan also includes an examination of the economic efficiency of individual locations, the development of target images, and the derivation of measures such as job cuts from these [1].
The news has caused a lot of uncertainty at affected locations, particularly at the Stuttgart plant. Kiltzsch-Müller states that such a statement automatically causes a lot of uncertainty at her location [1]. The negotiating success with Daimler Truck's management, celebrated in May, now takes a backseat due to the company's cost-cutting plans. Michael Brecht, the overall works council chairman, has called the job cuts a breach of agreements [1].
Sources: [1] Handelsblatt [2] Reuters [3] Automobilwoche
- The restructuring strategy of Daimler Truck, comprising expansion into high-margin industries such as defense and zero-emission trucking, aims to maintain efficiency in business operations while addressing financial challenges, such as the reduction of costs by over €1 billion by 2030.
- In response to the job reductions of approximately 5,000 positions in Germany, the company has agreed to avoid compulsory redundancies until the end of 2034, creating a socially responsible business environment during this transition period.
