D/C, union agree on cost-cutting plan
STUTTGART - DaimlerChrysler's management and union representatives reached a deal over plans to cut personnel costs at D/C's largest German plant.
Unions agreed on [euro]500 million in cost cuts at the Mercedes plant in Sindelfingen, Germany, in return for job guarantees for 6,000 employees until 2012.
D/C had threatened to shift 6,000 jobs from Sindelfingen, which employs 30,000, to Bremen, in northern Germany, and East London, South Africa, unless workers agreed to work longer hours and renounce a series of benefits.
Other German automakers will study the agreement carefully. Opel is currently in …
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