Mercedes has 60 company-owned branches – and wants to sell them all. picture alliance / SvenSimon | Frank Hoermann/SVEN SIMON
Mercedes-Benz announced in January that it would sell all of its 60 company-owned branches. The dissatisfaction of sales employees with these plans is now further increased by the payment of unequal annual bonuses.
While employees in the Daimler plants received a special payment of up to 7,300 euros, employees in the branches only received 1,000 euros.
In view of the sales plans, unions and the works council fear a deterioration in working conditions in the 60 branches. According to “Manager Magazin”, they expect “very tough disputes” in the upcoming negotiations.
Mercedes-Benz salespeople are frustrated. In January, the car manufacturer announced that it wanted to sell all of its branches in Germany. The recently paid bonus for 2023 is also causing dissatisfaction. While the employees in the branches received 1,000 euros gross, employees in other areas received a special payment of up to 7,300 euros. Like that “Manager Magazine“ reported that the works council and IG Metall have now announced “hard disputes”.
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Bonus payments increase dissatisfaction
Last year, the branches generated an average return on sales of 1.9 percent. The bonus of 1,000 euros paid out for this is significantly lower than in other areas, such as the Daimler factories. This is nothing new for salespeople. After all, there is no right to equal profit sharing, according to “Manager-Magazin”. For many years, the special payments in the group’s own car dealerships – the “Own Retail” division – have been lower in an internal company comparison.
But given the sales plans, dissatisfaction with the unequal bonuses is particularly noticeable this year. According to “Manager Magazin”, Ergun Lümali (61) can also understand the “anger about the different levels of profit sharing”. He is head of the general works council at Mercedes. Unions and the works council fear that the sale of the 60 branches could worsen conditions for the approximately 8,000 sales employees.
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Mercedes branches are about to be sold
Ten years ago, Mercedes sold 16 locations in eastern Germany to a Chinese conglomerate. Now the remaining branches will follow. As “Manager Magazin” reported, the sales and human resources director reaffirmed the plan in mid-March. The sale will take place. HR Director Britta Seeger’s team has been collecting offers for branches for around two weeks. According to insiders, many of the car dealerships will be sold to trading groups from their own network. However, foreign investors are apparently also interested in individual branches.
The employees reacted negatively to the announcement. In recent years, Mercedes branches have made efforts to make operations “more profitable and efficient,” said Lümali. This had an impact on salary and bonuses. Nevertheless, Mercedes has to make considerable investments to ensure the competitiveness of its car dealerships. According to the report, this and the low margins are among the main reasons for the sale.
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Negotiations are likely to be tough
First, Britta Seeger wants to negotiate with the employees. “We will not simply allow the rights and protections that have been achieved over the years to be taken away,” explained General Works Council Chairman Lümali in “Manager Magazin”. “Secure future prospects” for the employees are crucial. But negotiations with the employees in the branches are likely to be difficult. While Mercedes is hoping for an agreement with the works council by the summer, employee representatives and unions are expecting “very, very tough disputes”.
Crucial in this process: the employment guarantee for Mercedes employees, which is valid until the end of 2029. Such regulations could make sales more difficult, as there is less potential for savings without job cuts. Industry experts expect around 20 percent per company. Mercedes must create incentives for the affected employees to suspend the guarantee. In addition, the collective agreement of employees in the branches offers potential for conflict. They would currently earn more than standard employees in the motor vehicle trade.
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