2024-10-28 11:34:00
Europe’s top automotive group, Germany’s Volkswagen, plans to close at least three plants in Germany and cut “tens of thousands” of jobs, the works council announced on Monday.
The plan, presented by management, provides for a 10% pay cut for all employees and the transfer abroad of numerous activities of the group, which are currently based in Germany, we read in a statement.
The German government is aware of the situation the company is going through and has admitted to being in contact with it and with workers’ leaders.
“It is well known that Volkswagen is in a difficult situation,” the German government spokesman said at a regular news conference.
Cavallo and other union leaders at the German automaker promised “fierce resistance to the cuts.” “I can only warn all members of the board of directors and all top management of the company: do not mess with us, with the workforce of Volkswagen,” the union leader said on Monday.
The German union IG Metall, which represents the majority of workers at the manufacturer’s plants in Germany, has also vowed to oppose any plant closures or other major cuts.
“This is a blow to the hearts of Volkswagen workers,” said Thorsten Gröger, regional director of the union in Lower Saxony, where Volkswagen is based.
Volkswagen defends its cost plan
For their part, Volkswagen executives came out Monday to defend their cost-cutting plans, although they did not directly comment on reports that the company would eliminate tens of thousands of jobs.
Volkswagen brand CEO Thomas Schäfer said in a statement that costs at plants in Germany have become particularly high. “We cannot continue as before,” Schäfer said. «In our German factories we are not productive enough and our factory costs are currently 25% to 50% higher than we had planned. This means that individual German factories cost twice as much as the competition,” he said.
The statement was published shortly after the statements of the director of the Volkswagen works council, Daniela Cavallo.
“Without comprehensive measures to regain competitiveness, we will not be able to afford significant investments in the future,” Volkswagen human resources director Gunnar Kilian said in a statement.
Not to mention the specific measures
Kilian, however, did not directly address these claims and did not provide details on the specific cost-cutting measures the automaker is considering. “The fact is that the situation is serious and the responsibility of the negotiating partners is enormous,” he added.
«We stick to the principle agreed with co-management according to which the discussion on the future of Volkswagen “It must be carried out first and foremost internally with our negotiating partners,” he added.
Volkswagen has announced “concrete proposals to reduce labor costs” ahead of collective negotiations with union leaders due on Wednesday.
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