Porsche plant workers agree to less pay to produce electric car

Cost-cutting measures include no pay increase, more hours
By Reuters
|payroll-reporter.com|Last Updated: 12/23/2015

BERLIN (Reuters) — Porsche workers have agreed to concessions worth several hundred million euros to secure production of an all-electric sports car at the manufacturer's biggest plant, a spokesman for the company said.

The Volkswagen-owned manufacturer said earlier this month it would spend about 1 billion euros (US$1.10 billion) at its base in Zuffenhausen and create more than 1,000 jobs there to build the battery-powered "Mission E" model.

But wage costs of the 13,000 workers employed at Zuffenhausen exceed those at Porsche's other German factory in Leipzig and at a VW plant in Osnabrueck where Porsche's Cayman and Cayenne models are assembled, a source at Porsche said.

"Employer and employees have jointly drawn up measures that have led to the decision of producing the Mission E model at Zuffenhausen," a spokesman for Porsche said on Tuesday, confirming a report by German magazine Automobilwoche.

Cost-cutting measures agreed between workers at Zuffenhausen and management include steps to raise the work week to 35 hours from 34 and to drop parts of a pay increase between 2016 and 2025, the magazine said. Porsche declined comment on details of the measures.

Porsche's works council did not return calls seeking comment.

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