Germany’s largest car company, Volkswagen, is experiencing serious financial problems. Crisis discussions are currently being held with management. On Monday morning, the employees must be informed by the works council about the state of affairs…
And that probably doesn’t bode well: VW obviously wants to put a lot of pressure on its employees. According to the Handelsblatt, the group’s top management has a list in mind that should result in savings of four billion euros.
All employees affected
Particularly bitter: the cuts should affect everyone. The plan is to reduce wages by ten percent for everyone and rounds of zero wages for 2025 and 2026. Bonus payments in the highest rate group “Tariff Plus” and popular anniversary bonuses will also be scrapped.
Location closures under discussion
Some scenarios are even bleaker: Several VW locations could be closed. When asked, the company declined to comment. “We do not participate in speculation surrounding the confidential discussions with the works council and the union,” said a VW spokeswoman.
Friction with the works council
The fact that there is rumbling at the car manufacturer is not new. Volkswagen boss Oliver Blume (56) and Volkswagen AG chairman Daniela Cavallo (49) have been arguing since September about the possible abolition of job guarantees and the closure of locations. Cavallo is not an easy opponent for the CEO. The so-called ‘VW law’ grants employees an unusually large number of rights. The works council is therefore considered the most powerful employee representation among our German neighbors.
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.
