Mercedes-Benz Plans to Extend Working Hours and Delay Bonus Payments

[Labor Relations] Mercedes-Benz plans to increase weekly working hours for employees in Germany from 35 to 40 hours without additional pay and to postpone the 18% monthly salary bonus—originally scheduled for July 2026—to 2027.

Core Development: Cost Pressures Drive Unilateral Labor Adjustments

Mercedes-Benz has proposed two measures without sufficient consultation with unions: working five additional hours per week, amounting to approximately 260 unpaid hours annually, and delaying a special bonus affecting 90,000 employees by one year.

Key Figures: Plummeting Profits Force Labor Cost Cuts

The group’s net profit for 2025 plunged nearly 50%, dropping sharply from €10.4 billion to €5.3 billion. In Q1 2026, the automotive division’s profit margin declined from 7.3% to 4.1%.

Strategic Context: Tariffs and EV Transition Exert Dual Pressure

U.S. tariff hikes and weaker-than-expected electric vehicle demand are compelling Mercedes-Benz to implement aggressive cost-control measures, though formal negotiations with Germany's metalworkers' union (IG Metall) are required before implementation.