Mercedes-Benz postpones special payment – IG Metall calls for protests at ten sites

The group justifies the move with a difficult economic situation. As the company stated in a letter from the Board of Management to the workforce, it must "weiterhin mit Hochdruck die Kosten senken" (continue to reduce costs with maximum intensity). "Trotz all unserer Anstrengung ist die Situation heute in Deutschland dramatisch," the letter continues. The management announced that it intends to "radikal beschleunigen" (radically accelerate) processes and to "verschlanken" (streamline) established structures. In addition, "die Arbeitsstunde" is to become "günstiger" (cheaper); "der direkteste und in unseren Augen fairste Weg" is "in allen Bereichen für das gleiche Geld mehr" to work.

Economic situation of the group

The economic problems are significant: The profit of the Mercedes-Benz Group nearly halved in 2025, from 10.4 billion euros to 5.3 billion euros. In the first quarter of the current year alone, group earnings fell by more than 17 percent compared to the same period of the previous year. Sales and revenue also developed negatively. The company cited tariffs, negative exchange rate effects, and intense competition in China as causes.

The postponement is set against the backdrop of a program launched just over a year ago called "Next Level Performance," within whose framework costs are already being reduced. IG Metall points out, however, that a postponement of the special payment is only permissible under the union's own rules in the event of an economic crisis. From the union's perspective, these measures are directed "einseitig gegen die Beschäftigten und stellen zentrale tarifliche Errungenschaften in Frage," as stated in a position paper by the IG Metall local representation in Stuttgart.

Protests and planned actions

IG Metall reacted immediately and called on employees nationwide to protest. Demonstrations are planned for this Friday at the Mercedes-Benz sites in Sindelfingen, Untertürkheim (Stuttgart), Kuppenheim, and Rastatt. Further actions are to follow in Bremen, Berlin, Hamburg, Düsseldorf, Ludwigsfelde, and Germersheim. In addition, according to the union, a non-public, digital rally is planned.

The Board of Management announced that in the coming weeks and months it would speak with the works council about how the company's future viability in Germany could be secured. This is likely to intensify the conflict between management and employee representatives in the coming days, especially since the union is threatening broad mobilization at nearly all major German sites.

Background of the collective bargaining dispute

Observers see the move as part of a larger wave of cost-cutting measures in the German automotive industry. While corporate managements primarily point to price pressure from China and increased US tariffs, employee representatives fear a permanent erosion of collectively bargained standards. The question of whether the postponement of the special payment is compatible with existing collective bargaining rules is likely to play a central role.

The outcome of the dispute remains open. IG Metall has made clear that it will not accept the postponement without resistance; the Board of Management, for its part, speaks of a "dramatic" situation and emphasizes the need for far-reaching savings. If no mutually agreeable solution is reached, an expansion of the protests can be expected.

What is certain is that the austerity course has direct effects on employees' pay: Since the "transformation component" is part of regular remuneration, its postponement means a noticeable reduction in monthly income. The measure thus directly affects the majority of the core workforce and makes the conflict personally tangible for those concerned.