By Kim Richters 
 

Daimler AG said Tuesday that it agreed with the workers' council on key points related to the car maker's strategy to cut costs amid the coronavirus pandemic.

Measures to lower personnel costs will include reducing weekly hours--and hence pay--for employees in administration and production-related areas. This staff will work two hours a week less for one year from October.

"The agreed measures are aimed at responding to the particular economic burden caused by the corona pandemic and at further securing employment," Daimler said in a statement.

The company and the workers' council will finalize the agreements in the next weeks.

Daimler plans to "significantly reduce personnel costs by the end of 2022 and onwards."

 

Write to Kim Richters at kim.richters@wsj.com

 

(END) Dow Jones Newswires

July 28, 2020 08:58 ET (12:58 GMT)

Copyright (c) 2020 Dow Jones & Company, Inc.
Daimler (XE:DAI)
Historical Stock Chart
From Aug 2020 to Sep 2020 Click Here for more Daimler Charts.
Daimler (XE:DAI)
Historical Stock Chart
From Sep 2019 to Sep 2020 Click Here for more Daimler Charts.