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Some car makers in Germany are struggling with lower demand from European clients with big firms such as Daimler and Ford letting go hundreds of temporary workers to ease the pressure, local media reports this week.
It has been reported that a Ford plant in the South-western town of Saarlouis is cutting temporary posts because of a slowdown in the European automobile market.
The public broadcaster, Saarländischer Rundfunk, claims that Ford will axe 200 temporary jobs by the end of the year although the firm has so far only confirmed cutting 80 posts. Weaker demand is to blame as Ford is reducing car production levels from 1 November to 1,530 cars a day from 1,670.
Daimler has also been reported to have slashed temporary jobs in Stuttgart-Untertürkheim where the car maker is presently using 720 temporary staff. Daimler will not renew the contracts of around 300 temporary workers because of austerity measures, according to a report in Stuttgarter Nachrichten.
Last week the German car manufacturer Volkswagen announced plans to take on nearly 600 temporary agency workers on a permanent basis at one of the firm’s largest national plants. This followed mainly strong international demand from the US and China although the firm admitted that European sales have been lagging behind.
The car manufacturing industry is one of the most important sectors for the German staffing market. The metal and electrical industry is increasing pay rates for agency workers from 1 November, following a landmark collective agreement earlier this year.