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Mercedes Works Council Warns of Strained Morale as Cost Cuts Bite

The labor chief links a profit slump to rising anxiety before works council elections, citing trade barriers.

Overview

  • Works council head Ergun Lümali says employee sentiment is tense at the Stuttgart carmaker ahead of the upcoming votes.
  • He calls for rapid transparency, clear targets and binding coordination with management, rejecting top-down decisions that could endanger launches and site viability.
  • Pressure is most visible at the Sindelfingen plant, where more than 30,000 employees face efficiency drives, faster tempo and cost savings.
  • Mercedes reported profit down by nearly 50% last year after earlier declines and has launched a savings program to restore profitability.
  • Reports indicate thousands of jobs are being cut as frictions with China and the United States weigh on the export-dependent business.