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Unions set up shop at US Daimler plant

The United Auto Workers union said Friday it was creating a chapter at the only factory within auto giant Daimler's global manufacturing system where workers lack union representation.

Unions set up shop at US Daimler plant
Photo: DPA

The local chapter aims to represent the 3,400 US employees at a Mercedes-Benz plant outside of Tuscaloosa, Alabama, in the southern United States, and is being formed with help from German trade union IG Metal.

"This is the formation of a local union that will become the bargaining agent for workers at this facility," said Gary Casteel, UAW secretary treasurer and vice chairman of the Daimler workers committee.

"This isn't a petition for an election."

As membership roles grow, the UAW and IG Metal will pressure the company to accept the UAW as employees' bargaining agent, he said.

Mercedes-Benz opened the Tuscaloosa plant 20 years ago and the UAW has spent years trying to organize the plant without success.

The UAW already represents about 7,000 workers at Daimler truck plants in the United States, which are primarily located in North Carolina.

Michael Brecht, vice chairman of the Daimler AG Supervisory Board, noted during a press conference that the Alabama plant is the only Daimler factory without a union.

Workers at a Daimler truck plant in Chennai, India are currently in the process of setting up a union with the blessing of Daimler's management.

"The workers in Alabama are the only ones who don't have the support of a union," Brecht said.

"We are working with the UAW to change that."

Daimler officials emphasized that they saw no reason to change the structure of labour relations at the plant.

"Daimler has committed to stay neutral on the topic of labour representation and the choice to join a union is up to our team members," a company spokeswoman told AFP.

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DAIMLER

Germany’s Daimler to cut ‘at least 10,000’ jobs to fund electric shift

German luxury automaker Daimler on Friday said it would slash at least 10,000 jobs worldwide in a major cost-cutting drive to help finance the switch to electric cars.

Germany's Daimler to cut 'at least 10,000' jobs to fund electric shift
Daimler's headquarters in Stuttgart at night. Photo: DPA

 “The total number worldwide will be in the five-digits,” Daimler personnel
chief Wilfried Porth told reporters in a conference call, after the group said
in an earlier statement “thousands” of jobs would be axed.

He added that the company intended to save €1.4 billion in staff costs. The cull includes slashing management jobs worldwide “by 10 percent”.

READ ALSO: Germany boosts support for electric cars with cash bonuses and a million charging points

“The automotive industry is in the middle of the biggest transformation in its history,” Daimler said.

“The development towards CO2-neutral mobility requires large investments,”
it added.

Along with other manufacturers, Daimler is scrambling to get ready for tough new EU emission rules taking effect next year, forcing it to accelerate the costly shift to zero-emissions electric cars and plug-in hybrids.

The group, which employs 304,000 people globally, said the job cuts would be achieved through natural turnover, early retirement schemes and severance packages.

Daimler's announcement comes as the mighty German car industry is buffeted by trade tensions, weaker Chinese demand and a darkening economic outlook.

Other major car companies have in recent months already unveiled plans to cut some 30,000 jobs in the sector over the next years.

Germany's Audi said it wants to axe 9,500 jobs, followed by more than 5,000 each at Volkswagen and car parts supplier Continental, while Bosch aims to cut more than 2,000 roles.

READ ALSO: Audi to slash 9,500 jobs in Germany

US car giant Ford plans to scrap some 5,000 jobs in Germany alone.

Electric engines require fewer parts and are less complicated to assemble than internal combustion engines, needing fewer hands.

But auto bosses have said thousands of new, hi-tech jobs will also be created in the electric era to make cars more autonomous and connected.

German automotive expert Ferdinand Dudenhöffer has said he believes the German car sector — which currently employs 800,000 people — will shed 250,000 jobs over the next decade.

A total of 125,000 new ones will be created, he predicted.

Daimler returned to profit in the third quarter and said it was expecting 2019 revenues to be “slightly above” last year's, while operating profit would be “significantly below” the €11.1 billion in 2018.

The group was this year hit by expensive recalls and a €870 million fine for having sold diesel vehicles that did not conform with legal emissions limits.

 

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