Mercedes Carmaker Threatens to Close Factory in Germany
6 Articles
6 Articles
Mercedes-Benz has threatened to close a plant in Germany and move production <p>Mercedes-Benz demands to cut costs at German plants and revise benefits. Otherwise, production can be moved to the East Europe.</p>
A simmering conflict at Mercedes is coming to an end. The Executive Board is said to have put pressure on employee representatives with the construction of a new plant in Eastern Europe.
Mercedes-Benz has reportedly threatened to close down a German factory's works council members internally. The underlying issue is a dispute over labor costs and working hours. In the Hungarian factory, the hourly wage is 15 euros, while in Germany it is 49 euros. Guess where Mercedes wants to make cars.
Factory closures and expansion in Eastern Europe could also be among the scenarios for the automotive giant, while labor costs in Germany are an increasing burden. Mercedes would expect more jobs from the workers with unchanged wages, and the plant in Kecskemét already has a serious capacity.
Mercedes is experiencing a drastic scenario: If the works council does not support wage cuts, they will invest in Eastern Europe – and close a German location.
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