Squeezing By with Reduced Shifts: ZF Trims Work Week Amid Finances
Reducing Work Hours by Supplier ZF - Supplier facing crisis reduces work hours at ZF facilities
In a move to steady its turbulent financial boat, renowned auto supplier ZF is shaking things up at its HQ in Friedrichshafen. Starting May 15, weekly working hours will be temporarily cut to 32.5 hours, with a permanent reduction to 31.5 hours as of June 1. Over 2,800 employees will feel the effects, as salaries will adjust accordingly. The aim: save a significant sum in the double-digit millions.
Both the company and the works council have confirmed this arrangement, which remains in place until March 31, 2026, or beyond, dependent on certain conditions. The option for a four-day workweek was a top priority for the works council, according to Franz-Josef Müller, chairman of the works council at the 'Plant Z'. Various research, development, and divisional departments, including central R&D, will be part of this flexible workweek.
Arnd Hermann, site manager, refers to this as a "solidarity solution" that offers a socially responsible response to ZF's tenuous predicament. This innovative move could potentially serve as a model for other ZF sites in Germany. Although the specific sites and numbers involved have yet to be announced, negotiations are already underway.
ZF, a leading player in the global automotive industry, experienced a substantial loss of over one billion euros last year. A glimmer of hope emerged in 2023, with profits reaching 126 million euros. The company is under the stewardship of the Zeppelin Foundation, led by the Mayor of Friedrichshafen.
- Friedrichshafen, Germany
- Headquarters
- Works Council
- In view of the financial straits, ZF is considering implementing vocational training programs for its employees in Friedrichshafen, Germany, as part of its headquarters, to foster multi-skilled workforce and cut costs, following the successful four-day workweek trial.
- To bolster its manufacturing sector and move towards a more adaptable workforce, ZF is planing to provide vocational training in various departments, such as research and development, in EC countries, opening opportunities for employees to upgrade their skills and contribute to the business's growth in the industry.
