“Outstanding results despite difficult overall conditions” – this is how the Germans over at Daimler and its component companies call the performance of 2021, and to celebrate in style, as they usually do, they're sharing the joy and cash with most of the workforce.
For this year, each of the eligible Daimler AG and Mercedes-Benz AG employees will receive a payment of 6,000 euros (about $6,762 at today’s exchange rates) as a “token of respect for the workforce’s performance and flexibility.”
The bonus is payable only to tariff-scale employees in Germany, which would be around 100,000 people. That means a financial effort of 600 million euros, which is roughly $676 million. As per the official announcement, the bonus will not be paid in time for the winter holidays, but in February 2022, along with wages and salaries.
The announcement was made before the company makes public the financial results for the year, hinting things might be a lot better than expected given the current economic climate.
“This is the right message to the employees after another turbulent year with the coronavirus, the crisis in the semiconductor industry, the resulting short-time work and the increased work from home,” said in a statement Ergun Lümali, chairman of Daimler’s and Mercedes’ General Works Council.
“Our colleagues are the key to the success of our company. Therefore, it is only more than fair to reward their tireless dedication with an extraordinarily high profit-sharing bonus. On behalf of the General Works Council, I would like to thank them for this outstanding commitment in 2021.”
Profit-sharing is a common practice in the auto industry. The Germans have implemented the formula in 1997, and up until this year, the highest payment was of 5,700 euros ($6,422) back in 2018, but at the time, the company’s books had 130,000 eligible tariff-scale employees.
The bonus is payable only to tariff-scale employees in Germany, which would be around 100,000 people. That means a financial effort of 600 million euros, which is roughly $676 million. As per the official announcement, the bonus will not be paid in time for the winter holidays, but in February 2022, along with wages and salaries.
The announcement was made before the company makes public the financial results for the year, hinting things might be a lot better than expected given the current economic climate.
“This is the right message to the employees after another turbulent year with the coronavirus, the crisis in the semiconductor industry, the resulting short-time work and the increased work from home,” said in a statement Ergun Lümali, chairman of Daimler’s and Mercedes’ General Works Council.
“Our colleagues are the key to the success of our company. Therefore, it is only more than fair to reward their tireless dedication with an extraordinarily high profit-sharing bonus. On behalf of the General Works Council, I would like to thank them for this outstanding commitment in 2021.”
Profit-sharing is a common practice in the auto industry. The Germans have implemented the formula in 1997, and up until this year, the highest payment was of 5,700 euros ($6,422) back in 2018, but at the time, the company’s books had 130,000 eligible tariff-scale employees.