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Sale of Mercedes-Dealerships: Agreement with Works Council

Mercedes-Benz will sell its owned car dealerships. A dispute with the works council has arisen. Now, a solution has been found for the employees in essential aspects.

Mercedes will sell its dealerships - now there is a principle agreement with the works council.
Mercedes will sell its dealerships - now there is a principle agreement with the works council.

Automobile industry - Sale of Mercedes-Dealerships: Agreement with Works Council

The conflict between Mercedes-Benz and the Works Council regarding the sale of the company-owned dealerships has largely been settled. A Mercedes-Benz spokesperson stated in Stuttgart that both parties have agreed on essential points for potential buyers' labor relations.

The points cover the compensatory adjustment that the approximately 8,000 affected employees in around 80 dealerships can make if the branches are sold to external dealer groups. Previously, the "Stuttgarter Nachrichten" and "Stuttgarter Zeitung" reported on this.

Agreement includes points for sale

Mercedes-Benz announced in the spring that it intended to sell the dealerships. The spokesperson further stated that the agreed-upon points, which are to be part of a final agreement, are crucial for a smooth transition to a new employer. "They primarily involve a process that secures the tariff binding of the buyers and thus retains tariff-based employment conditions – this includes wage, working hours, holiday days, Christmas bonuses, and other elements."

Additionally, it was agreed that the employment security provided by Mercedes-Benz, which excludes terminations based on company reasons until the end of 2029, would continue with the buyer.

Details unknown

The spokesperson did not want to comment on specific details of the agreement. Mercedes-Benz reportedly committed itself in a framework collective agreement to selling the dealerships only to interested parties who would adhere to the automotive trade tariff. Another core aspect of the agreement is a one-time payment: Mercedes, according to reports, will pay an average of 85,000 Euros per employee. The sum consists of a fixed amount that is the same for all and a variable payment that is based on factors such as years of employment. The exact proportions are still under negotiation.

The spokesperson added that Mercedes-Benz is confident that it can drive the restructuring of the dealerships into the future with this negotiation result. Mercedes intends to select buyers based on several criteria: They must bring sales expertise, entrepreneurial competence, financial strength, investment readiness, and openness towards labor representatives. As a whole, the locations should not be sold. The company also ruled out selling to pure financial investors. The focus is on retaining jobs in Germany, it was stated.

No concrete sales talks yet

Concrete talks with potential buyers have not yet taken place, the spokesperson said. However, interested parties have already registered. According to union reports, around 25,000 Mercedes-Benz employees protested against the planned sale of the dealerships nationwide in early July.

  1. The Employer, Mercedes-Benz, has settled the conflict with the Works Council over the sale of its company-owned dealerships in Stuttgart.
  2. The 'Stuttgarter Nachrichten' and 'Stuttgarter Zeitung' previously reported on the conflict's essential points, including compensation for affected employees.
  3. In the spring, Mercedes-Benz announced its intention to sell the dealerships, which is crucial for a smooth transition to a new employer, as acknowledged by a Mercedes-Benz spokesperson.
  4. The agreement includes provisions for securing the tariff binding of the buyers, ensuring retained tariff-based employment conditions, such as wages and holidays.
  5. The employment security provided by Mercedes-Benz, which excludes terminations based on company reasons until the end of 2029, will continue with the buyer.
  6. Mercedes-Benz reportedly agreed to sell the dealerships only to interested parties who adhere to the automotive trade tariff, emphasizing job retention in Germany.
  7. Potential buyers have already registered for talks with Mercedes-Benz, but no concrete sales negotiations have begun as of yet.

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