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Mercedes Workers Face Longer Hours, Delayed Pay
27 Jun
Summary
- Mercedes may extend work week to 40 hours without extra pay.
- A crucial 18% bonus payout has been postponed until 2027.
- Volkswagen may close four plants, cutting 100,000 jobs.
Mercedes-Benz is reportedly planning significant changes to its employee policies that could lead to longer working hours and delayed bonus payments. The company is considering extending the standard work week from 35 to 40 hours, meaning employees would work an additional hour each day without any increase in pay. This change would result in 260 extra unpaid hours annually for affected workers.
Adding to the financial strain, Mercedes has decided to postpone a bonus payout, which constitutes 18% of monthly income, from its scheduled July date to sometime in 2027. This decision impacts around 90,000 employees and has reportedly been made without prior consultation with union officials, drawing criticism.
In parallel, Volkswagen is undertaking a massive restructuring effort, with plans to potentially close four German factories. This could lead to over 45,000 job losses, adding to the 50,000 job cuts already planned, potentially totaling 100,000 layoffs. The company's leadership has begun discussing these cost-cutting measures with senior executives.
