MUNICH, Germany Despite the silver linings industry pundits currently are painting at the horizon, slow demand persists in many areas of the automotive industry. In this week OEM Daimler and tier one Bosch announced to extend their short-time working schemes.
Bosch announced to continue short-time work for 33.000 workers out of its 115.000 employees in Germany. A company spokesperson explained that besides these workers affected by a 'legal' short-time working scheme another 26.000 workers currently are working shorter than normal but in their case the scheme is covered by the tariff contracts with workers' unions and does not need to be declared towards labor authorities. Thus, in total 59.000 Bosch workers are currently working less than normal. Bosch plans to extend most of the short-time work to extend beyond September for another six months, the spokesperson said.
According to the spokesperson, the underutilization hits all segments. While the management believes the low has been hit already no significant upturn is in sight yet.
Similar is the situation at Daimler. Currently, 41.000 of Daimler's 160.000 German employees are affected by short-time working schemes. It is said that the situation is particularly difficult in the company's truck production. According to media reports, currently the management is in negotiations with the workers' councils at several locations aiming at extending the short-time work.
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