Shortened Week for Troubled Auto Giant ZF
ZF, a key provider of automotive components, reduces operational hours - Supplier facing crisis reduces working hours
Struggling auto parts behemoth ZF, headquartered in Friedrichshafen, is temporarily shortening work weeks as of May 15. The weekly hours will initially drop to 32.5 hours, then fall further to 31.5 hours from June 1. Over 2,800 employees will be affected, with their wages adjusted accordingly. The goal? ZF aims to save a hefty double-digit million figure with this move.
Both the company and the works council have announced the decision in separate statements. The works council has expressed its concerns about a four-day work week but has yet to reach a final agreement. The affected departments include the central research and development, as well as several divisional development offices.
Arnd Hermann, site manager, labels this strategy a 'solidarity solution,' ensuring a socially acceptable response to ZF's tight financial straits. A ZF spokesperson hints at this approach potentially serving as a model for other German locations, but details are yet to be revealed.
ZF, a major player in the global automotive market, reported significant losses last year, totaling more than a billion euros. Remarkably, the company managed a profit of 126 million euros in 2023. The company is primarily owned by the Zeppelin Foundation, steered by Friedrichshafen's mayor.
Behind the Scenes at ZF
In the midst of the automotive industry's tumultuous journey, ZF's move to trim work hours sheds light on the pressures felt by companies like it. The works council plays an essential role in these negotiations, ensuring a fair balance between company objectives and employee welfare.
This adjustment exerts dual effects on employees: shorter workweeks may offer improved work-life balance, yet could also mean reduced income and increased workload. On a broader spectrum, ZF's strategies indicate a commitment to optimizing operations across its global network, echoing industry trends that emphasize cost savings, innovation, and efficiency.
- The work hours for employees at EC countries' ZF, particularly those in Friedrichshafen, are being reduced from May 15, initially to 32.5 hours per week, and further to 31.5 hours from June 1.
- The company, ZF, and the works council have made separate announcements about this decision, which includes the central research and development department and several divisional development offices.
- Although the four-day work week is a cause for concern among the works council, the temporary measure aims to save ZF a hefty sum in double-digit million figures, which could potentially serve as a model for other German locations.
- finance: This 'solidarity solution' – as Arnd Hermann, site manager, labels it – is a response to ZF's tight financial straits, with the company making significant losses last year, totaling over a billion euros, but managing a profit of 126 million euros in 2023.
