July 10, 2006
Daimler Plans Accounting Outsourcing
DaimlerChrysler AG has decided to outsource some of its accounting work to lower-wage countries as part of its restructuring program. This move has been opposed by automakers works councils. The company is officially considering locations such as Czech Republic and India for outsourcing some of the company's accounting work. The works' council is against the outsourcing and maintains that the automaker's new plans should not be outsourced. Daimler has been negotiating for the last two months. It is also developing a social and compensation plan for large-scale administrative restructuring. DaimlerChrysler is planning to cut about 6,000 positions worldwide.
The automaker wants to begin implementing the restructuring in August with 60 pct of the changes to be made by the end of 2006. But the works council has threatened to veto the plans: 'We are saying without a balance of interest this simply won't fly,' Klemm said.
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