Corona crisis: Daimler sends tens of thousands of employees on short-time work

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Volkswagen already has tens of thousands of employees working briefly, with Daimler another large automotive group is now following suit: the Swabian carmaker wants to send a large part of its workforce in Germany on compulsory vacation because of the corona crisis. The management and works council had agreed to apply for short-time work from April 6 to April 17, the Stuttgart-based car group said.
The company is thus reacting to the far-reaching effects of the corona virus and the resulting increasingly difficult economic and social conditions. Daimler had already decided in mid-March to interrupt the majority of its production and work in selected administrative areas in Europe for an initial period of two weeks; the employees are currently cutting vacation and their working time accounts.

Future projects should continue

The exact number of those affected is currently being determined, said a spokeswoman. But it is already clear that a large part of the approximately 170,000 employees in Germany will be affected. At VW, short-time working will initially apply to 80,000 employees by April 3.

Urgent areas and work on important future projects should be excluded from short-time work at Daimler. The works council should regulate how the group plans to implement short-time work at the locations.

“With these measures, Daimler is making a contribution to protecting the workforce, curbing the spread of this pandemic and securing employment,” the company said. “At the same time, this decision helps to prepare Daimler for a period of temporarily lower demand and to secure the company’s financial strength.”

Hundreds of thousands of jobs were saved with the short-time allowance paid by the Federal Employment Agency (BA) after the 2008 financial crisis. If companies have to temporarily reduce working hours, the BA steps in under certain conditions – and continues to pay most of the salaries.
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https://www.spiegel.de/wirtschaft/unternehmen/coronakrise-daimler-schickt-zehntausende-beschaeftigte-in-kurzarbeit-a-75dc832f-93b1-4032-8fc0-22a55fa469c7

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