Daimler close to no-layoff guarantee at key German plant, worker reps say

Daimler close to Sindelfingen plant deal

FRANKFURT — German carmaker Daimler AG is expected to announce this week an agreement giving job security until the end of 2019 to 37,000 employees at its biggest production plant in Germany, a spokeswoman for the works council said Wednesday.

Layoffs will be ruled out under the deal, details of which are expected to be announced at a news conference on Thursday, employee council spokeswoman Silke Ernst said.

Daimler said last week that it would move the plant’s Mercedes-Benz C-Class production to Bremen, Germany and Vance, Alabama starting in 2014.

The company has already said no jobs would be lost due to the transfer. It had no immediate further comment Wednesday.

Sindelfingen, near Stuttgart, has some 20,000 production workers and another 17,000 employees in areas such as research and development. Less than 4,000 currently work on C-Class production in Sindelfingen.

Daimler said it would move C-Class production as part of plans to cut manufacturing costs and take advantage of a growing U.S. market for its luxury vehicles. In return for the C-Class, Sindelfingen will get production of the SL sports car from Bremen.

Shares of Daimler were down 1.7 percent at euro34.77 ($51.11) in Frankfurt afternoon trading.

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