According to the company, the pressure to save money at car giant Volkswagen is enormous, with factory closures and tens of thousands of jobs at stake. But turbulent times offer no protection from collective bargaining. VW workers are now demanding a seven percent wage increase.
The German trade union IG Metall is also calling for job security for the approximately 120,000 VW workers after 2030 and is threatening strikes from December. Thorsten Gröger, chief negotiator for IG Metall, said in Hanover on Wednesday that if necessary, tens of thousands of VW workers would be at the factory gates and on the streets from December 1.
The tone of the negotiations is getting rough
The signs point to escalation: “Winter is coming – and then, if necessary, we will really heat up the board,” the union official said. The conflict with VW has only just begun.
In the wage agreement, IG Metall demands, among other things, 7 percent more for employees. This demand remains, according to Gröger. Volkswagen had terminated a number of collective agreements, including the job security that had existed for three decades and was actually supposed to run until 2029.
Volkswagen emphasizes austerity measures
VW reaffirmed its savings targets at the start of collective bargaining negotiations with IG Metall. “We have to restructure our company together. The situation is serious,” said VW negotiator Arne Meiswinkel. “The task now is to find feasible solutions.”
The collective bargaining round, originally scheduled for the end of October, was brought forward after VW tightened its austerity measures earlier this month. “The first round of negotiations will be about getting a common picture of the starting situation,” Meiswinkel said.
The German car giant from Wolfsburg wants to save money in view of the enormous overcapacity in Germany and threatens to close factories. VW management recently announced that VW is selling 500,000 fewer cars per year in Europe than before the outbreak of the corona pandemic – and these cars are not coming back. That is equivalent to the production of two factories.
Volkswagen in good company
Far fewer cars are rolling off the production line in VW factories than a few years ago. However, research by Reuters into six car manufacturers with factories in Europe shows that the car manufacturer is not the only one with this problem. Western Europe in particular is in a bad situation. Ford, Renault and Stellantis are also struggling with overcapacity, according to data from analysis agency GlobalData available to Reuters.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
