Mercedes-Benz plans to return to compulsory presence in the office
The car manufacturer wants to largely abolish home offices and establish four days of attendance per week as standard.
Quick Look
- Mercedes-Benz is aiming to move away from home offices.
- In the future, four days of attendance per week will become standard for full-time employees in order to increase productivity.
- The regulation is part of a comprehensive strategy to reduce labor costs in Germany.
AI-generated summary
Why It Matters
Mercedes-Benz is responding to a slump in profits caused by weak Chinese business and US tariffs with a productivity offensive. The company aims to reduce labor costs in Germany.
The car manufacturer Mercedes wants to increase productivity and sees the best place for this in the office. That's why the option to work from home is largely being abolished. Four days of attendance should be the new standard. And CEO Källenius would like to go even further.
In the midst of the dispute over labor costs, the car manufacturer Mercedes-Benz wants to largely abolish the possibility of working from home. "The new agreement is intended to allow managers to set up to four days of attendance per week for full-time employees without justification," the company said. “The aim is for these four days to be the standard in the future.” A negotiating group of companies and the works council have agreed to regulate this in a new works agreement at group level.
“With the works council, we have now developed a new regulation that places greater emphasis on personal cooperation, direct exchange and team spirit,” said the board in a letter to the employees. Accordingly, the social partners had been discussing new regulations for mobile working since last year. The works councils of the locations would now have to approve the new agreement so that it can come into force on January 1, 2027.
From the company's perspective, more presence in the office contributes to the "productivity offensive" announced by the board in June, with which Mercedes-Benz is responding to the slump in profits as a result of weak China business and increased US tariffs. Lower labor costs in Germany, a high-wage location, are intended to increase competitiveness. CEO Ola Källenius wants to increase weekly working hours from 35 hours with the same pay. According to media reports, the company also wants to reduce vacation and Christmas bonuses, which Mercedes has not commented on.
The employees had protested against an extension of working hours. Negotiations with the works council have so far produced no results. Management recently increased the pressure by threatening to close two plants in Germany at company meetings if labor costs did not fall. The works council announced resistance to the threat, but said it was willing to talk.
What to Watch
AI outlook — possibilities, not facts
The new works agreement comes into force on January 1, 2027
Possible · Within months
Open Questions
- How do the individual works councils at the locations react to the agreement?
- Will the threats to close the plant actually be implemented?
