American Marconi Wireless News - Mercedes demos set stage for wave of German auto protests

German carmakers are battling fierce Chinese competition, US tariffs and weak demand in key markets, with a string of job cuts and other austerity measures announced in recent times.

Organised with the powerful IG Metall union, thousands of workers rallied outside several Mercedes plants, from the southern city of Sindelfingen -- outside Stuttgart -- to Bremen in the north.

"While shareholders benefit more than handsomely, employees are supposed to sacrifice their contractually guaranteed rights," said IG Metall boss Christiane Benner at a protest in Duesseldorf.

"This is how you squander the future and trust."

They were protesting against proposed measures including unpaid increases in weekly working hours and cuts to benefits, according to IG Metall.

Over 33,000 workers took part in the protests nationwide, according to the union. Mercedes said almost 16,000 people had taken part in demonstrations at six of its sites.

Mercedes, whose profits halved last year, told AFP that it had launched a savings drive because "structural costs in Germany -- particularly labour costs -- are not competitive by international standards".

Workers were informed of potential measures -- including increasing working hours for no extra pay -- last month, and Mercedes plans to discuss them with staff representatives, a spokeswoman said.

"We take any potential uncertainty and concerns seriously," she added.

IG Metall said Friday's action was the start of a wave of protests against cutbacks across the industry, with more car manufacturers and suppliers to be targeted in coming weeks.

Among them will be Volkswagen, after reports last week said Europe's biggest carmaker was planning to slash up to 100,000 jobs -- double the number previously announced -- and to close four plants in Germany.

The plan, which would be the biggest overhaul in the 89-year history of the 10-brand carmaker, is expected to be outlined at a supervisory board meeting next Thursday.

Volkswagen has declined to comment.

D.Moore--AMWN