Truck Maker MAN to Cut 2,300 Jobs in Germany Over 10 Years
Traton Company Cites Electricity and Labor Costs Paired With Pressure From Asian Competitors
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MunichÌý— German manufacturerÌýMAN Truck & BusÌýon Nov. 20 said it plans to cut around 2,300 jobs inÌýGermanyÌýover a period of 10 years.
No layoffs are planned, a company spokesman said, with positions to decrease naturally through retirement.
The manufacturer's main plant inÌýMunichÌýis to be worst affected, with 1,300 jobs lost, followed by 600 at the site in Salzgitter and 400 in Nuremberg.
MAN must "adapt to the continuing weakness of the truck market inÌýGermany," the spokesman said, warning that high electricity and labor costs paired with rising pressure from Asian competitors are weighing on results.
"We are now entering a phase of high investment and need to generate sustained profits in order to expand our product portfolio," he said.
Robots work on the side walls of truck cabs at MAN Truck & Bus. (Sven Hoppe/dpa/TNS)
The IGÌýMetall union warned that the relocation of production to a new Polish site run by MAN's parent company, theÌýTraton Group, will affect factories inÌýGermany.
The plans "jeopardize the long-term existence of the mainÌýMunichÌýplant," said union representativeÌýSybille Wankel.
"No one is losing their job today, but in the long term, the decision means that the MAN truck of the future will be built inÌýPolandÌýand not inÌýMunich," she added.
If "all parts for a truck are manufactured inÌýPolandÌýand transported from there toÌýMunichÌýfor assembly only," Wankel explained, "it is obvious that at some point, assembly inÌýMunichÌýwill also be up for discussion."
Karina Schnur, from the company's general works council, said she was "appalled by the company's behavior."
"At no point was the management willing to seriously discuss alternatives to the relocation plans,"Ìýshe stated. "This is a slap in the face for the people here inÌýMunichÌýwho work hard for MAN every day."
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IG Metall officialÌýHorst OttÌýannounced that he would confront MAN management and strongly recommend that the board enter into talks.
"Escalating the situation won't help anyone — but they need to know that we will do so," he warned.
Ott did not say exactly what this would look like, but emphasized that IG Metall has "the right tool for every problem. Which one we use depends on the other side."
