Last-Ditch Daimler-Benz Unit Talks Fail to Stop Plan to Slash Payroll

Last-ditch efforts over the weekend to save thousands of jobs at Daimler-Benz Aerospace (DASA) failed when talks between management and works council representatives ended without clear results, sources close to the meeting said Sunday.

The two sides met Saturday for one last try before management makes a final decision today on implementing a restructuring plan that includes slashing about 8,800 jobs.

DASA, Germany’s largest aircraft maker, unveiled the new program in late October in a bid to return the group to profitability after it lost $1.1 billion in the first-half 1995, partly because of unfavorable exchange rates.

The company had promised to discuss the cuts with works council members, but by Friday, works council head Ingrid Luellmann was saying the talks with DASA were at a “total standstill” leaving the council skeptical about any chance of a last-minute breakthrough.

Both sides left Saturday’s 1 1/2-hour meeting with long faces and declined specific comment.

Works council sources said no new ideas had been introduced and DASA chief Manfred Bishoff said only, “We will have to see” when asked about the talks.

Labor leaders, anticipating the weekend talks would fail to produce a breakthrough, had announced plans for one-day strikes at DASA’s eight Airbus plants and demonstrations across Germany.