Daimler Truck's Restructuring Plan: Key Changes Ahead for German Operations

Daimler Truck has announced a comprehensive restructuring initiative aimed at enhancing its competitiveness in the European market, with significant implications for its operations in Germany. The management team has reached an agreement with the central works council that outlines several key strategies for restructuring, which will impact approximately 28,000 employees across five major sites in the country, including Wörth, Gaggenau, Kassel, Mannheim, and Stuttgart.

As part of the plan, the company aims to achieve a reduction in personnel costs through a socially responsible approach. This includes leveraging natural employee turnover and early retirement options to minimize job losses. However, the need for a reduction in workforce in certain areas has been acknowledged, particularly in administrative and support functions. The bus segment will remain unaffected by these changes.

Daimler Truck has committed to investing EUR2 billion into its German production network by 2030, as part of a broader cost-cutting strategy named 'Cost Down Europe.' This initiative is designed to reduce recurring costs by over EUR1 billion by the deadline while addressing both material and personnel expenses. The company is also looking to consolidate administrative functions and may outsource certain services to achieve efficiency gains.

Another significant aspect of the agreement is the assurance that there will be no compulsory redundancies for the next ten years. The central works council has emphasized that this commitment provides employees with a degree of job security during a period of uncertainty. The details of a redundancy package will be finalized in the coming weeks, ensuring that any job cuts are handled in a manner that mitigates negative impacts on affected employees.

Additionally, the agreement includes adjustments to wage increases scheduled for 2026, which will be offset by existing contractual allowances. The employment security measures currently in place have been extended to 2034, further reinforcing the company's commitment to protecting its workforce.

In terms of temporary staffing, the quota for temporary workers has been increased to 18%, although the number of temporary employees currently stands at about 700 across all German facilities. The works council has expressed the importance of ensuring that any shifts in staffing strategy are based on thorough economic assessments.

Another critical point raised by the works council is the need for a revised profit-sharing model. They emphasized that if employees are contributing to the company's success, they should also share in the benefits. This sentiment was echoed by the management, which acknowledged the need for a sustainable future for its German operations amid the current economic challenges.

In conclusion, the restructuring plan put forth by Daimler Truck reflects the company's proactive approach to ensuring its long-term viability in a competitive market. By focusing on responsible workforce management and strategic investments, Daimler Truck aims to navigate these challenging times while maintaining a strong presence in Germany.