Job cuts ahead of realignment of MAN Truck & Bus

In News, MAN2 MinutesBy NZ Trucking magazineApril 1, 2021

The executive board of MAN Truck & Bus SE has reached an agreement with the group works council and the IG Metall union on the conclusion of a reconciliation of interests, a social plan and a ‘Future Collective Bargaining Agreement‘ for the German sites of MAN Truck & Bus SE. This clears the way for the extensive and systematic realignment of MAN. 

The commercial vehicle manufacturer had announced its intention to implement a fundamental reorganisation in response to the industry‘s transformation, enabling it to successfully master the challenges associated with the core challenges of carbon-free mobility, digitalisation, and automation. By 2030, MAN aims to evolve from a commercial vehicle manufacturer into a leading provider of intelligent and sustainable transport solutions.

The agreement now reached on restructuring the Company represents a milestone. After long negotiations, the CEO of MAN Truck & Bus SE, Andreas Tostmann, expressed his satisfaction with the compromise achieved: “We have been able to reach agreement with the employee representatives on measures that will contribute to improving earnings by up to €1.7 billion.”

The restructuring of the production and development network with a strong focus on technologies of the future will make an important contribution to cost efficiency. 

The Company and employee representatives have agreed a reduction of around 3,500 jobs in Germany. This figure includes permanent employees, loaned workers, and employees with temporary employment contracts. In the social plan that has been negotiated, job cuts will be implemented in a socially responsible manner by greater use of partial-retirement arrangements, allowing temporary employment relationships to end, a reduction in loaned workers, and offers of voluntary severance packages. The company will also offer employees the chance to move to other companies in the Volkswagen Group.