Smaller pay rises for Daimler staff

DaimlerChrysler AG employees at Mercedes factories in Germany agreed to smaller pay rises and increased hours after the carmaker threatened to shed 6,000 jobs, adding to pressure for a longer work week.

Emboldened by the reduced power of unions amid rising unemployment, Germany’s biggest companies are asking staff to work longer to save their jobs. The DaimlerChrysler deal will reduce costs by €500m ($612m) a year.