2024-09-13 09:37:33
Volkswagen has officially terminated the agreement that guaranteed job security for its German employees. The contract was signed with the unions in 1994 and has been extended several times. Thus, layoffs will be possible at the automaker from July next year. This is causing concern among almost 300,000 employees.
The measure also ends regulations on temporary employment and internships at VW’s German plants. Human resources director Guinar Kilian says he is ready to quickly sit down for talks with unions to discuss a new agreement and wages.
At the beginning of the month, Europe’s largest carmaker announced that it was considering closing plants in Germany for the first time. The group is struggling with overcapacity, which amounts to half a million unsold cars. Volkswagen is suffering from declining demand for electric cars and fierce Chinese competition. The German Workers’ Council has announced that it will not accept factory closures and layoffs for operational reasons.
VW employs almost 300,000 people in Germany. In addition to the main factory in Wolfsburg, the group also has plants in Hanover, Emden, Osnabrück, Braunschweig, Salzgitter, Kassel, Zwickau, Dresden and Chemnitz.