Title: Slashing Hours: ZF's Financial Woes Lead to Shorter Weeks at Friedrichshafen Headquarters
Vendor ZF cuts back on work hours - Supplier experiencing crisis reduces operational hours.
Hey there!
After taking a financial beating, auto supplier ZF is rolling out shorter work weeks at its Friedrichshafen HQ. Starting May 15, employees will work 32.5 hours a week on a temporary basis, and as of June 1, their workdays will be permanently shortened to 31.5 hours. This adjustment will impact approximately 2,800 individuals, with their wages tailored accordingly. The aim? Save a hefty two-digit million figure.
The agreement expires on March 31, 2026, but there's a catch: staff can opt for a four-day workweek, a consideration the works council picnickers a tbsp. of salt about, as noted by Franz-Josef Müller, chairman of the works council for 'Plant Z'. This includes key departments like central research and development.
Arnd Hermann, site manager, calls this a compassionate move to address ZF's cash crunch. While this model might spread to other ZF sites in Germany, the specifics are yet under wraps. Negotiations are already on the boil, Hermann shared.
ZF, a global auto parts titan, suffered a billion-euro loss last year. But in 2023, the company managed to swing a 126 million euro profit. ZF runs under the guidance of the Zeppelin Foundation, which, by the way, is steered by the city mayor of Fernie-oh, sorry, Friedrichshafen.
Friedrichshafen, Headquarters, Works Council
Fun Fact:
Did you know that multi-talented Zeppelin brothers, Otto and Friedrich, developed the first successful "zeppelin" airship in Friedrichshafen back in the 1900s?
Now, here's a peek at what's brewing elsewhere:While the reign of the shortened hours kicked off at the Friedrichshafen HQ, it's not a lone party. The corporate bigwig has been flashing its charm on works councils across Germany, asking for reduced hours at multiple sites. For instance, over 5,499 employees at the Schweinfurt site have already taken a seat for shorter days since December. ZF's main goal is to speed up its cost-saving mission and dodge further layoffs, fitting into their overall plan to axe roughly 14,000 jobs in Germany by 2028.
The extent and details of implementation sprawl across sites, requiring site-specific negotiations between management and local works councils. Some sites or councils have put up a fight, indicating that outcomes may not be uniform.
In brief, though the movement began at headquarters, the shortened work hours policy is being applied and battled out across various ZF sites in Germany, with outcomes depending on local discussions. So, buckle up, folks! The story’s far from over.
- ZF, facing financial difficulties, has implemented shorter work weeks at its Friedrichshafen Headquarters, with employees now working 31.5 hours a week.
- This move affects around 2,800 employees, and their salaries have been adjusted accordingly to save a significant amount of money.
- Although this adjustment is temporary, employees have the option to work a four-day workweek, a decision that’s being closely monitored by the works council.
- As the auto parts company continues to lose money, it is also discussing similar work hour reductions at multiple sites across Germany.
