Germany: Daimler management imposes “social principles” to businesses with a service provision contract

The management of the German carmaker published, on Monday, October 7, the list of social and pay principles businesses willing to sign a service provision contract with the company will have to comply with.  The working and pay conditions these firms offer their employees will have to be in line with the collective agreements of the sectors they belong to.  Daimler is also planning to set up a team of experts to do monitoring audits.  This announcement followed the official termination of negotiations with the central WC and the IG-Metall union for a company agreement designed to settle this issue.  These parties are accusing the management of having chosen the lowest solution to keep saving money to the detriment of a group of low-paid employees.  (Ref.  130600)
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New social principles at Daimler. On October 7, Wilfried Porth, Director of Personnel at Daimler, presented a series of principles which businesses that want to sign a service provision contract with Daimler will have to respect. “With our social principles, we’re establishing standards for the conditions to award and carry service provision contracts that go beyond statutory obligations, thus allowing Daimler to use them in a competitive manner,” he explained.

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