Mercedes-Benz cuts German bonuses, urges longer work hours

Mercedes-Benz announced a cost‑saving program for its German operations, postponing the annual "transformations" bonus for about 90,000 of its roughly 108,000 employees to the following year. The bonus, normally 18.4% of regular monthly pay, is being delayed as the board describes the situation in Germany as "dramatic" due to global trade constraints, a weakened Chinese market and rising competition.

The company says it will accelerate processes, streamline structures and make "the same money work for more hours" to improve competitiveness. The works council has criticised the move as a unilateral decision that shifts the burden onto staff and warned against longer unpaid hours. At the Bremen plant, more than 500 workers from Hall 9 left their stations during a lunch break, citing the heat and the new demands, leading to a brief shutdown of the shift.

The cost‑cutting comes amid broader pressures, including potential redistribution of production units from a closed South African plant and an increased share of temporary labour at the Bremen site. Management says the measures are intended to safeguard the company’s future in Germany.