Germany: temporary recruitments are Daimler’s answer to regulatory pressure on service provision contracts

The “Grand Coalition” made up of conservatives and social-democrats isn’t in power yet but is surely getting there.  Its program, revealed on November 27, contains the introduction of statutory minimum wage and the will to better regulate forms of employment such as service provision contracts.  Thus, Daimler is quickly changing its strategy.  After publishing, in October, a list of social and pay principles that will have to be respected by businesses willing to sign a service provision contract with Daimler, the carmaker is now temporarily recruiting nearly 1,400 people who used to work under service provision contracts – in order to avoid legal uncertainty and maybe a lawsuit.  (Ref.  130759)
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1,400 temporary recruitments. Erich Klemm, chairman of Daimler’s central WC, confirmed last week that his company had started transforming the contractual relation it had with 1,400 workers under service provision contracts – mostly in its R&D departments – into temporary employment statuses. Klemm says 600 contracts have already been signed and 800 are being assessed. The ‘new’ agency workers will enjoy, as provided for in the agreement signed in 2012 between the IG-Metall and the...

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