“Volkswagen can produce cars”
Heil wants to extend short-time working benefits at VW
14.12.2024Reading time: 1 Min.
It’s about maintaining the VW locations and preventing redundancies, says the Labor Minister – and wants to “build bridges”.
Federal Labor Minister Hubertus Heil wants to defuse the crisis at the Volkswagen Group with the planned extension of short-time working benefits to a maximum of two years. “It’s about maintaining the VW locations, preventing redundancies for operational reasons and shouldering the necessary future investments,” said the SPD politician to the “Augsburger Allgemeine”. “Our task as a state is to accompany this solution with an active economic and industrial policy,” emphasized the minister.
“We will decide next Wednesday in the cabinet by ordinance to extend the short-time working rules,” said Heil, confirming the plans to double the benefit period to 24 months. It’s about building bridges and securing employment.
Because of the company’s difficult situation, Volkswagen is demanding a ten percent pay cut and the cancellation of allowances. Management is also threatening redundancies and plant closures.
the SPD Minister Heil, who comes from Lower Saxony, was confident that he could avert this. “Volkswagen can produce cars that are triumphant in world markets, I have no doubt about that,” he told the newspaper. “What is crucial now are social partnership solutions between management and the union.”
How can workers in the automotive industry prepare for changes in employment due too technological advancements?
Interview: Hubertus Heil on the future of Volkswagen and employment Solutions
Editor: Welcome, Mr. Heil, and thank you for joining us today. The news surrounding Volkswagen has been quite critical. Can you explain why extending short-time working benefits is essential for VW in this challenging period?
Hubertus Heil: Thank you for having me. The extension of short-time working benefits is crucial for several reasons. It is about maintaining VW locations and preventing redundancies due to operational reasons.By extending this benefit to a maximum of two years,we aim to support the workforce during this challenging time and shoulder necessary future investments. It’s a strategic move to stabilize employment levels and ensure that the potential of VW is fully realized.
Editor: You mentioned in yoru recent statements that “Volkswagen can produce cars that are triumphant in world markets.” what gives you such confidence in VW’s capability to recover and thrive?
Hubertus Heil: My confidence stems from the brand’s rich heritage, expertise, and innovation potential. Volkswagen has shown resilience in the past, and I truly believe that they have the capacity to adapt and succeed in the global market. The key now is the collaboration between management and the unions, ensuring we come together with social partnership solutions that can stabilize the company and protect jobs.
Editor: The management at Volkswagen has proposed a 10% pay cut and potential redundancies. How do you balance these tough negotiations while ensuring workers feel secure?
Hubertus Heil: It’s a delicate balance, indeed. My approach is to encourage dialogue between management and labor representatives. While financial adjustments may be necessary to secure VW’s future,it’s vital that we prioritize job security. We must seek solutions that do not lead to immediate layoffs but rather focus on the long-term recovery of the company.
Editor: Building bridges, as you put it, involves collaboration. What role does the government play in facilitating these negotiations?
Hubertus Heil: The state has a responsibility to foster an active economic and industrial policy.We support initiatives that encourage dialogue and compromise. By extending the short-time working rules, we act as a bridge to absorb some of the shocks the workforce is facing. It’s all about creating an environment where both management and workers can negotiate terms that are fair and conducive to everyone’s interests.
editor: Lastly, for our readers who are concerned about their future in such a volatile industry, what practical advice can you give about preparing for potential shifts in employment?
Hubertus Heil: I’d advise workers to stay informed about the changes within their industry and, if possible, seek upskilling opportunities. The auto industry is evolving, with a significant shift towards electric vehicles and automation. Embracing lifelong learning and being adaptable will be crucial. Engaging in open dialogues with their employers about any concerns is also essential. It’s critically important to be proactive rather than reactive in such volatile situations.
Editor: Thank you, Mr. Heil, for sharing your insights on the current situation at Volkswagen and the steps being taken to secure employment in the sector. Your outlook provides a hopeful outlook amidst the challenges facing the automotive industry.
Hubertus Heil: Thank you for the chance to discuss these critically important issues. Together, we can find the pathways that ensure a robust future for Volkswagen and its employees.