Both the company and union leaders are scheduled to hold new talks on Wednesday.
ADVERTISINGThe address of Volkswagen wants to close at least three plants, cut tens of thousands of jobs and also cut the salaries of remaining staff by 10%, according to a statement from staff representatives. The manufacturer It also aims to reduce the size of all remaining plantsadds the document. According to the document, this will entail the outsourcing of many tasks and entire divisions to service providers. external services.
“This is the plan of the largest industrial group in Germany to start the sale in their country of origin,” said the president of the General Business Committee, Daniela Cavallospeaking at Volkswagen’s main plant in Wolfsburg. “All German plants VW They are affected by this. “No one is safe.”
The announcement comes after Volkswagen recently issued its second profit warning in less than three months. Weak demand in the Chinese and European markets, together with a botched electric vehicle transitionhave affected the manufacturer’s profits. In addition to the 10% pay cut, there will be a two-year pay freeze in 2025 and 2026. The council also wants to eliminate a monthly premium of 167 euros by collective bargaining and other bonuses.
Clarity on future job losses
If theAnnounced closure plans go aheadIt would be the first time that Volkswagen closes a factory in its own country in its 87-year history. The brand currently has 10 plants and 300,000 employees in Germany. The company already warned at the beginning of the year that factory closures could be on the horizon due to growing competition from Chinese brands and slowing consumption.
Unions are now calling for more clarity on the future of Volkswagen. “For more than a year, the Board of Directors has not provided us with the objectives for the main brand…the Council still gives no sign of a plan for the future,” he said Daniela Cavallo. According to her, cuts cannot be justified if there are no concrete objectives to aspire to. Cavallo He also urged politicians to draw up a “comprehensive plan” for the transition to electric vehicles and to boost Germany’s viability as an industrial hub.
An industry spokesperson quoted by Reuterssaid: “It is well known that Volkswagen is in a difficult situation… The position of the Chancellor In this regard it is clear, namely that possible wrong management decisions of the past should not be to the detriment of employees. “Now it’s about preserving and securing jobs.”
On Wednesday, union leaders will meet with representatives of Volkswagen for the second round of collective bargaining negotiations. Cited by Reuters, the company will also present third quarter financial results on Wednesday.
Volkswagen has not yet responded to Euronews’ request for comment.
