Mercedes-Benz Freezes Bonus for 90,000 German Employees, Demands Longer Hours
28.06.2026 - 13:36:05 | boerse-global.de
Some 90,000 German workers at Mercedes-Benz will have to wait nine extra months for a contractual special payment. The so-called transformation bonus, worth 18.4 percent of one month’s salary, is now slated for April 2027 instead of July 2026.
The company points to Germany’s fading competitiveness. CEO Ola Källenius has argued that every department needs to deliver more output for the same money. Personnel chief Britta Seeger announced a review of which benefits the automaker can still afford.
Management is pushing for a fundamental overhaul of working hours. The current 35-hour week is under scrutiny, and supervisory board chair Martin BrudermĂĽller has openly called for a return to 40 hours without wage compensation. For executives, pay has already been frozen for 2025 and 2026, while mandatory office attendance has increased.
Worker representatives reacted with anger. Ergun Lümali, head of the central works council, said the decision to postpone the payment was made without negotiations. He blamed the company’s troubles on factors outside employees’ control. The council rejects any discussion of longer hours, insisting that is a matter for the IG Metall union. Tensions are already spilling onto the shop floor: at the Bremen plant, employees walked out early after learning of the plan.
The cost-cutting drive follows a sharp profit slump. In the 2025 financial year, earnings fell from €10.4 billion to €5.3 billion. The first quarter of 2026 brought more bad news—profit dropped another 17.2 percent. Mercedes-Benz management attributes the decline to trade conflicts, weak demand in China, and high domestic costs. The company is stepping up efforts to shift functions abroad.
Mercedes-Benz is not alone. Volkswagen is considering even deeper cuts, with reports suggesting up to 100,000 job cuts worldwide. At home, four factories are at risk of closure: Hannover, Emden, Zwickau, and Audi’s Neckarsulm plant. IG Metall and VW’s works council have vowed to fight any shutdowns. The supervisory board is expected to decide on July 9, 2026.
For Mercedes-Benz, tariff negotiations are scheduled for this autumn. Given management’s current demands and the mood among workers, a tense standoff appears likely.
