Tag Archives: Laid off

Germany: Daimler doubles the reduction in jobs from 15,000 to 30,000 – shareholders rejoice as share prices rise | Instant News


Germany: Daimler doubles the reduction in jobs from 15,000 to 30,000 – shareholders rejoice as share prices rise

By K. Nesan

July 25, 2020

Store manager reported on Wednesday that Daimler AG, with the full support of the IG Metall union, drastically increased the number of jobs being cut at car makers. Instead of the 15,000 previously announced, now 30,000 jobs must be destroyed worldwide. Shareholders react enthusiastically. The news just broke when Daimler’s stock price skyrocketed.

No one should believe that the mass layoffs at Daimler have reached the end point with this announcement. Daimler’s workers and millions of employees in companies related to the automotive industry must regard this dismissal as the beginning of a broad campaign of unprecedented attacks.

Daimler’s corporate headquarters Mercedes-Benz Factory Untertürkheim[Credit:[Credit:[Kredit:[Credit:World Socialist Website]

Since the founding of Benz & Cie by Karl Benz in 1883, there has never been a massive attack on workers. Job cuts at Daimler, Germany’s leading automotive industry and the German economic engine, bring a wave of redundancy in other industries as well.

On the same day, IG Metall announced that there would be massive layoffs in many companies, according to his information. Unions assume that at least 300,000 jobs in the metal and electricity industries are in grave danger. At the same time, the union announced that it would not do anything about this, except to intensify its cooperation with companies and the government. Above all, he requested an extension of time to work for up to 24 months, “to ease the company.”

Store manager has published a chart depicting 10 production sites around the world as “shaky candidates” who are threatened with closure or cutting. The site is located in Germany, Brazil, Mexico, South Africa, Poland, France and Finland, and employs 43,400 workers.

A week ago, Daimler announced a loss of € 1.68 billion for the second quarter of 2020. Analysts had expected higher losses. According to Daimler, the market recovery was stronger than expected. In June, there was “strong growth,” he said. However, Daimler Ola Källenius’s boss said, “But there is still much to be done. … We must continue our systematic efforts to further reduce the company’s break-even point through cost reduction and capacity adjustment. “

Chief Daimler clearly stated that there would be further layoffs and cost-cutting programs. Store manager the headline was titled “Källenius takes the problem seriously” and quoted a member of the supervisory board who said, “He will solve it now.” CFO Daimler Harald Wilhelm commented, “We cannot accept our fee structure in the long run.” Lowering Daimler’s cost base is “a task for the whole decade now,” he said.

What WSWS wrote about the council of works smoked meat tactics at the beginning of last week has now been confirmed. Workers’ board chairman Michael Brecht has announced the group’s apparent reduction plan only in the form of slices. If not, the work council and IG Metall will lose control of the workers.

Two weeks ago, Daimler’s chief of personnel, Wilfried Porth outlined the company’s plans in a detailed interview with Stuttgart Newspaper, suggesting that Daimler must save far more than € 1.4 billion. Because of this, far more employees than planned had to be laid off. He said that management was in intensive negotiations with IG Metall’s work council to devise a strategy.

The announcement of 30,000 redundancy recently is the result of this “intensive negotiation”. But even that is not the end of the story. Porth, for whom workers only numbers on the balance sheet and annual report, has announced there will be no “sacred cow.” Everything that workers have fought for in the past – collective agreements on shift bonuses, holiday salaries and Christmas bonuses – must be questioned, he said.

Daimler and IG Metall’s management knew that they would risk a revolt by workers if the level of their plans behind the workers’ backs was revealed immediately and completely. That is why the council of workers pretends to know nothing when announcing bad news, claiming they don’t know anything.

In fact, prominent work councilors and union officials sit on the supervisory board and economic committee. Not only are they well informed, but they also present their own plans for employment and social reduction, which were previously drawn up by trade unions The Hans Böckler Foundation.

More and more workers are recognizing IG Metall’s hostile maneuvers and intrigues. That Stuttgart Newspaper interview workers during shift changes on Monday after an interview with Porth is published. All those who express their anger do not want to mention their names, as a precaution against retaliation.

One worker, who had been employed at a steel smelting shop for 30 years, expressed concern that many young workers would lose their jobs. That Stuttgart Newspaper quoting it says that this applies especially to those who are just starting out, because those who arrive last usually have to leave first when the work is cut.

Five days after the interview with Porth, two prominent working councilors, Michael Brecht and Ergun Lümali, admitted in e-mail to all workers that they held intensive talks with management, but did not reveal any details. The e-mail only states that “additional steps” are needed to further stabilize Daimler’s financial situation.

As if they were their own managers, they wrote, “There is no doubt that the situation is serious. And of course, the current coronavirus crisis and changes in the automotive industry are weighing on our economic situation. That’s why we have intensive talks with management. … “

Personnel Manager Porth made it clear that layoffs were on the table. The goal cannot be achieved exclusively on a voluntary basis. Brecht, Lümali and IG Metall have no plans to fight this threat. On the contrary, their e-mail shows that they are fully on the side of the board of directors and see their main duty in convincing employees and keeping them silent.

They tried and postponed them by pointing to the “company agreement on safeguarding the future,” which allegedly covers job security until 2030. In fact, the agreement stipulates that this will no longer be a problem if economic conditions change.

The day before sending a shameful e-mail, Brecht explained at a video press conference held at the Benz factory in Gaggenau about what it really was. He said, “Not only the work council but both sides” must find a solution in the economic crisis. “We have instruments to reduce personnel costs in a crisis,” but “there is never a hundred percent guarantee.”

Trade unions are loyal partners of exploiters, not only in Germany but throughout the world. Workers must be clear about the class character of the union. They play a central role in preventing independent mobilization and a united struggle to push through workers’ demands.

The coronavirus crisis and technical changes in the car industry are welcome opportunities in the eyes of investors and shareholders to fire thousands of workers, to destroy the social benefits they have achieved in the past, and to introduce conditions like slaves in factories. . Whatever the costs of the crisis experienced by humans, the first priority is to increase profits. That is the real reason for the new cutting and factory closing program.

Trade unions defend the capitalist profit system and are closely related to the nation state; they will always act against the interests of workers. It is time for Daimler workers to oppose the conspiracy of the board of directors and workers’ council.

Cutting wages and social benefits will not save any work, but only open the way for further redundancies. All work, wages and social benefits must be maintained. When Brecht & Co. states that this is impossible because it endangers the profits of the board of directors, millionaires, and capital owners, it only means that job defense and wages require a struggle against capitalism.

The right to work and decent wages is higher than the obscene enrichment of major shareholders and accomplices. The work council must be forced to disclose all the details of their secret negotiations with management.

Car workers face the task of breaking with unions and councilors of their jobs that are bought and paid, forming independent action committees, joining together internationally and fighting for socialist programs. We ask all readers and especially Daimler workers to contact WSWS to discuss this issue and to organize a joint struggle to maintain employment.

The pandemic intensified the social crisis in New Zealand | Instant News


The pandemic intensified the social crisis in New Zealand

By
Tom Peters

May 30, 2020

The Financial Capability Commission (CFFC) of the New Zealand government reported on Thursday that a survey of 3,000 people, conducted in April, found 34 percent of households were in “financial difficulties”. A further 40 percent are “at risk of getting into trouble.”

This survey is part of a study involving eight countries. New Zealand ranks worse than the United Kingdom and Norway, where 28 percent and 8 percent of respondents are in “financial difficulties, respectively.” Other countries have not reported the results.

This finding reflects the dramatic decline and widespread living standards due to the global economic crisis triggered by the COVID-19 pandemic. Thirty-eight percent of respondents, estimated at 679,500 households, experienced a decrease in income, with 232,500 losing more than a third.

CFFC head Jane Wrightson warned that “lost income will get worse before it gets better.” In fact, there is no end in sight to what has been the deepest crisis of capitalism since the 1930s.

New Zealand is very exposed to the crisis: its tourism and international education industry is booming. Households have low savings and high levels of debt, many workers are in unsafe jobs and social welfare benefits are very low.

The country also has some of the most affordable housing in the world. CFFC estimates that 179,000 households, one in 10, have missed mortgages or rent payments since the beginning of the COVID-19 crisis.

The survey found that 40 percent of other households “have not experienced financial difficulties but are at risk of experiencing financial difficulties” if they lose income again. Only 26 percent are “financially secure,” with “enough money in savings to face future financial shocks.”

On Thursday, Children’s Commissioner Andrew Becroft notified Goods he estimates that another 200,000 children can be pushed into poverty, bringing child poverty to nearly 40 percent. Already, before the current crisis, 235,400 or one in five children lived below the poverty line, after the cost of housing was reduced.

Layoffs are accelerating, supported by a government led by the Labor Party and enforced by a trade union bureaucracy. All claims made over the past three years that Jacinda Ardern’s coalition government with Greens and NZ First will reduce poverty and restore the “human face of capitalism” are being completely discredited.

Based on Goods, 53,000 more people have registered for JobSeeker’s unemployment benefits since Sunday March 20. This brings the total to 198,000, representing more than 7 percent unemployment – the highest level in more than a decade. This level is expected to be well above 10 percent.

In the past week, Air New Zealand announced it would make 4,000 redundant, up from the previous estimate of 3,750. The airline is majority owned by the government and has access to $ 900 million in government loans.

Air New Zealand has received tens of millions of dollars in “wage subsidies” from the government. This handout, which was wrongly promoted as a way of saving jobs, did not stop businesses that cut wages and fired workers.

In the tourism sector, Millennium & Copthorne Hotels announced 910 layoffs. Tourism Holdings Ltd, which runs the Waitomo caves and Kiwi Experience businesses, cut 140 staff. AJ Hackett Bungy will cut about 150, nearly three-quarters of its staff, in Queenstown, Taupo and Auckland. The Invercargill Licensing Trust, which operates a hotel and hospitality business, has made 87 people wasteful.

The furniture and electronics retail chain Smiths City has fired 115 people, almost a quarter of its staff. Retail group H&J Smith intends to close stores in Dunedin, Mosgiel, Te Anau and Balclutha, with 175 redundancies.

Fuji Xerox, a printing and photocopying company, plans to cut about 100 jobs, 11 percent of its workforce. Its rival Ricoh reportedly cut 80 jobs, despite receiving $ 2.2 million in wage subsidies.

MediaWorks has 130 staff members, mostly at radio stations and sales teams. This follows 200 layoffs last month by NZME, which has New Zealand Herald.

Tower Insurance announced 108 redundancies after posting first-half profit of $ 14.9 million.

New Zealand’s ANZ Bank forces also attacked workers, despite generating $ 789 million in profits over the six months to March. The bank cut salaries of around 200 contract workers by 20 percent until the end of September.

The Auckland Board formulated an “emergency” savings budget for the largest city in the country in response to the $ 550 million in lost revenue expected during the following financial year. Labor Mayor Phil Goff told TVNZ on May 22 that the council “conducted a review that would produce less work in our organization in the coming months.”

Already, about half of 1,100 temporary workers and contractors have lost their jobs. The council reported in talks with the Public Service Association about imposing a wage freeze.

The Ardern government, facing elections in September, announced Income Payment Assistance (IRP) on May 25 for people who have lost their jobs since March 1. Paying $ 490 a week is about double the normal JobSeeker benefit, but it only lasts 12 weeks.

New payments are still not enough to pay for basic needs, especially in big cities where rental rates are highest. And people who are already unemployed before March will not receive an increase in their payments. Thousands of migrant workers remain prohibited from accessing welfare.

Trade Union President Richard Wagstaff, praising the IRP, said that the government was “agile and responsive … to meet the needs of our society.” Contrary to any struggle in maintaining employment, unions echoed the positions of the government and employers that mass redundancy was inevitable.

After the election, the IRP and the wage subsidy scheme will end. That will trigger a further wave of layoffs and increased poverty.

There is a growing demand from big business for anyone who wins the election to cut spending on social programs. Government ministers have made it clear that “generations” of workers must pay debts arising from pro-business subsidies, tax cuts and bailouts.

ANZ Bank economist Sharon Zollner said Goods May 26: “A group of our sacred cows might be reviewed.” They include retirement eligibility. The National Party opposition has promised to increase the retirement age from 65 to 67. The current government has ruled out the move, but the Labor Party had previously campaigned to limit pensions.

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