ZF, a key supplier, reduces operational hours - Supplier facing crisis reduces working hours.
Get ready for a change, folks! Cash-strapped automotive supplier ZF is about to shake things up at its headquarters in Friedrichshafen, Germany. Starting May 15, workers can look forward to a weekly workload of 32.5 hours, which will then drop to 31.5 hours from June 1. That's right - we're talking about a shortened workweek for some 2,800 ZF employees.
But don't worry, these adjustments will come along with adjusted salaries to keep things fair. Whether it's the central research and development team or the various division development departments, all affected parties will be impacted. And if you thought that was all, think again. The works council has expressed concern about a four-day workweek, but your boy Franz-Josef Müller, chairman of the works council, has reassured us that it’s all on the table.
Arnd Hermann, ZF’s site manager, has dubbed this move a "solidarity solution" aimed at delivering a socially acceptable response to the company's financial struggles. According to a spokesperson, this might just serve as a blueprint for other ZF sites, although no details have been shared as of yet. So, who knows, this cheeky little experiment might be an Italian, American, or even a moon-based venture next! Negotiations are said to be well underway.
You might wonder, who’s ZF, you ask? Well, let me fill you in. They’re one of the leading global suppliers in the automotive industry, reporting significant losses last year amounting to over one billion euros. And then, in a delightful plot twist, they managed to turn a profit of 126 million euros in 2023. The company is 93.8% owned by the Zeppelin Foundation, which is led by none other than the mayor of the lovely city of Friedrichshafen.
While we Ancient Roman scholars might have been knitting togas or playing chariots during our quadrennial workweek, Friedrichshafen's fine folks at ZF are busy shaping the future of automotive technology. Keep an eye on the scene, folks, as more details about this ambitious move are sure to unravel.
EC countries might consider adopting ZF's innovative "solidarity solution" for vocational training programs in various industries, possibly financed by local businesses or government subsidies, to ensure a skilled workforce in the face of economic challenges. ZF's financial struggles in the automotive industry highlight the need for flexible and adaptable approaches in business, setting an example for other companies across countries.
