German giant MAN cuts 2,300 jobs

(Patria) - Truck and bus manufacturer MAN announced today that it plans to cut around 2,300 jobs in its home country of Germany over the next ten years.

Workers will not be laid off, the company spokesperson emphasized, but jobs will be eliminated as employees retire.

Most jobs will be cut at MAN's main plant in Munich, a total of 1,300, while factories in Salzgitter and Nuremberg will lose 600 and 400 respectively.

- MAN must adapt to the persistently weak truck market in Germany. The company's operations are burdened by expensive electricity, high labor costs, and increasing pressure from Asian competition.

We are entering a phase of major investments and must be profitable over a longer period to expand our product portfolio - the spokesperson stated.

The metalworking industry union IG Metall, however, warns that plants in Germany will feel the consequences of relocating production to a new Polish factory managed by MAN's parent company - the Traton Group.

- These plans threaten the long-term viability of the main plant in Munich. No one will lose their job today, but in the long run, the company's decision means that MAN trucks will be built in Poland in the future, not in Munich - emphasized union representative Sybille Wankel.

If, however, all truck parts are produced in Poland and then shipped to Munich only for assembly, it is clear that at some point the question of closing the assembly plant in Munich will arise, the union official explained.

Karina Schnur from MAN's works council said she was "appalled" by the company's behavior.

- At no point was management willing to seriously discuss alternatives to the relocation plans - Schnur claimed, stressing that they represent a "slap in the face" for all employees who work hard at the plant in southern Germany.

IG Metall official Horst Ott, meanwhile, announced that he will demand negotiations with MAN's management.

- Escalation will not help anyone, but they must know that we are ready for it as well - Ott said, without specifying what measures they might take.

IG Metall has "the right tool for every problem," the union official said, adding that it depends on management which one they will use.