Daimler `Confident' of Solution as Workers Stay Home

Dusseldorf, Germany July 17, 2004; Hannah Warrington writing for Bloomberg reported that DaimlerChrysler AG is ``confident'' it will reach an agreement with workers after employees didn't work today at a factory in Sindelfingen, Germany during a second week of protests over proposed cost cuts.

``We should be able to recover production at a later stage, after agreement has been reached,'' company spokesman Hartmut Schick said in a telephone interview. DaimlerChrysler hasn't been notified of any strikes next week, he added.

As many as 12,000 workers at the biggest Mercedes plant didn't go to work today, threatening production of 1,000 cars, unions estimate. They oppose the Stuttgart, Germany-based automaker's plan to move 6,000 jobs from Mercedes plants in southern Germany unless unions agree to 500 million euros ($622 million) in cost savings.

Workers have agreed to work today's shift at a later date, said spokeswoman Nicole Laeage.

The works council representing the employees has offered to forego a 2.79 percent wage increase scheduled for 2006, which is worth between 180 million and 200 million euros. DaimlerChrysler said it wants an agreement by the end of this month.

Talks between worker representatives and the company will continue on Tuesday, works council spokeswoman Silke Ernst said in a telephone interview.

``There has to be a solution, but jobs have to be safeguarded,'' Ernst said.

German Chancellor Gerhard Schroeder won't interfere in the dispute, he said yesterday in an interview with German television channel N24.