Mahle Employees Forgo Raises, Bonuses to Secure Jobs in Stuttgart, Kornwestheim

Employees at the automotive supplier Mahle's Stuttgart and Kornwestheim locations have agreed to significant financial sacrifices to safeguard their jobs. The agreement, effective until December 31, 2029, provides special protection against dismissal and allows the company to proceed with its announced savings program in administration and development without resorting to job cuts.

Nearly 4,000 employees are foregoing their scheduled 2026 pay raise, accepting reductions in Christmas and vacation bonuses, and converting a special payment into days off. Salaried employees are making equivalent contributions. These measures are a direct response to declining market and revenue trends and increasing cost pressures, which the company stated necessitate cuts in the millions.

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The agreed employee contributions strengthen the competitiveness of the company.

Mahle CEO Arnd Franz called the agreement "elementary" for adapting to tougher market conditions, stating, "The employee contributions strengthen the company's competitiveness." However, he cautioned that German industrial sites remain threatened without further reforms and improved framework conditions. Matthias Fuchs, lead negotiator for the IG Metall union, described the deal as a "painful but responsible compromise," acknowledging the substantial contribution from employees.

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The colleagues make a high contribution.

Works council chairman Boris Schwürz highlighted the tangible impact on families but stressed that the agreement provides crucial breathing room. "The decisive factor is that Mahle now consistently uses this breathing room: We expect investments, qualifications, and new products at the sites, so that temporary employee contributions do not lead to permanent deteriorations," Schwürz stated. The agreement includes an exit clause, allowing either party to terminate the supplementary collective agreement early based on economic developments.

Mahle has implemented several cost-saving programs in recent years, leading to job reductions. The current situation reflects ongoing sluggish business, prompting this difficult but, according to management and unions, necessary compromise to secure the future of the Stuttgart and Kornwestheim operations.

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The cuts in wages, Christmas and vacation bonuses are felt clearly by every family. At the same time, we gain air to develop viable future concepts for Stuttgart and Kornwestheim. The decisive factor is that Mahle now consistently uses this breathing room: We expect investments, qualifications, and new products at the sites, so that temporary employee contributions do not lead to permanent deteriorations.