(Releads with agreement)
FRANKFURT, July 23 (Reuters) - Automaker DaimlerChrysler and its employees have reached an agreement early on Friday over comprehensive labour cost-cutting measures after protests by tens of thousands of workers in recent days.
After 16 hours of talks a spokesman for German engineering trade union IG Metall said group management, the works council and the union had agreed in principle over demands from Mercedes to save 500 million euros ($613 million) a year in personnel costs, mainly at its less efficient Sindelfingen plant.
Details will be announced at a news conference in Sindelfingen at 0600 GMT. The deal puts on hold demonstrations in Mercedes plants across the country planned for Friday morning.
After days of failed bargaining, the stand-off has triggered intense debate in Germany over the high price of domestic labour during a time when many companies are outsourcing to low-wage regions to remain competitive.
If employees at Daimler's profitable luxury unit agree to work longer hours for less pay in exchange for job security, the deal would signal another victory for more flexible labour conditions in Europe's largest economy.
Last week, over 60,000 workers took part in a day of marches to protest against management's threats to cut 6,000 jobs in Sindelfingen if they did not agree to company demands.
In an attempt to defuse the situation, the company has said its management board has offered to accept lower pay too, although Daimler declined to give details on how much less.
IG Metall itself needs to appear to have at least wrestled out important concessions from management if the union wants to stem a steady loss of members and retain considerable influence.