Daimler Works Council Secures Review of Outsourcing Plans S-Class seats will remain at the Sindelfingen plant—battery production is also coming

It worked out after all—despite the COVID-19 crisis: Production of the seats for the new S-Class will not be outsourced after all—but will remain at the Mercedes-Benz plant in Sindelfingen. The works council secured this outcome.

In 2018, company management had decided to outsource seat production to an external contractor. The works council accepted this—but in return secured a commitment that battery production and production of the GLC SUV model would be brought to Sindelfingen.

“Nevertheless, as the works council, we have always questioned the economic viability of outsourcing S-Class seat production and have continued to advocate for preserving our colleagues’ jobs,” explains Works Council Chairman Ergun Lümali. “A cost-benefit analysis now confirms our position and finally provides clarity: Outsourcing is not more cost-effective. Our S-Class seat production will remain at the Sindelfingen site—and battery production is coming here as well.”

Information and discussion event hosted by the Works Council at Daimler Sindelfingen regarding the outsourcing of parts of the IT department. (Photo: Daimler Sindelfingen Works Council)

Works Council Will Also Examine the Relocation of IT Functions

Now that the works council has succeeded in keeping S-Class seat production at the plant, it will also take a close look at the proposed outsourcing plans for parts of the IT division. Globally, the outsourcing will affect 2,000 employees, and across Germany, around 870 employees, including approximately 150 colleagues at the Sindelfingen site. The works council will take a similar approach to that taken with S-Class seat production and will also review the strategic planning and economic viability of the outsourcing plans in collaboration with auditors. To this end, the works council is also holding discussions with IT employees to gather their expertise.

One thing is clear: None of the 150 affected IT employees at the Sindelfingen site can be forced to transfer to outside companies. At the end of July, the works council secured a commitment that, despite the pandemic, there will be no layoffs for operational reasons and that jobs are secured through 2030.