Written by Cláudio Afonso | LinkedIn | X
Workers’ representatives at the German car giant Volkswagen Group have urged for an agreement before Christmas, as Europe’s largest carmaker warns of the potential closure of “at least three” plants causing significant layoffs.
Volkswagen’s planned cost-cutting program was “unavoidable” to address longstanding “structural problems”, CEO Oliver Blume said in a recent interview citing, “weak market demand in Europe and significantly lower earnings from China.”
The IG Metall trade union and VW’s workers’ council issued the demand on Thursday, urging management to engage constructively in negotiations aimed at averting significant disruptions as initially reported by several German outlets.
A legally mandated pause on industrial action ends in late November, paving the way for warning strikes as early as December 1 if talks collapse.
The negotiations cover approximately 120,000 employees in Germany, representing nearly half of the company’s national workforce of about 300,000.
Thorsten Gröger, IG Metall’s chief negotiator, urged Volkswagen to immediately start the negotiation process while the workers’ council chairwoman Daniela Cavallo also pressed for clarity.
“We want to resolve this uncertainty as quickly as possible and let our colleagues know before Christmas how things will continue at Volkswagen,” Cavallo said. She urged management to offer concrete proposals, warning that the workforce is prepared to take action if needed.
In a bid to resolve the dispute, IG Metall and VW’s workers’ council proposed pay reductions on Wednesday, a measure they estimate could save €1.5 billion ($1.58 billion) in labor costs. However, Volkswagen is demanding a more aggressive 10% across-the-board pay cut for its German workforce.
Written by Cláudio Afonso | LinkedIn | X
The post VW Workers Propose Pay Cuts to Prevent Plant Closures first appeared on EV.