Daimler to Cut Hours, Pay in Europe

Daimler AG plans to cut its labor costs by 2 billion euros, or about $2.7 billion, by trimming hours and wages for 73,000 non-production workers in Germany and by delaying a pay increase, Bloomberg reported Wednesday.

Germany-based Daimler, the world’s largest truck maker, also plans to delay a 2.1% percent wage increase for union workers from May to December and aims to reduce year-end bonuses, Bloomberg reported, citing a Daimler official.

Workers in the company’s administration, sales, and research and development will be asked to work 30 rather than 35 hours a week and accept 14% lower wages, Bloomberg reported.

Employees want a profit-sharing payment that totals 280 million euros (about $370 million) to be converted into a stake that could be in stock or options, a Daimler labor leader said, Bloomberg reported.

The company and its work council plan to complete talks before it reports its first-quarter earnings on April 28, Bloomberg said.