Volkswagen is currently negotiating employee wages (see video above). There is talk of abolishing bonus payments and reducing collective labor agreements by ten percent. The German company employs approximately 120,000 people.
Now the savings pin must be applied. Management stated that the automaker’s competitiveness was at risk. Factory closures are being discussed and operational layoffs could be possible from mid-2025.
The current collective labor agreement negotiations for employees are also characterized by austerity measures: collective labor agreement wages must be reduced by ten percent and jubilee benefits are to be abolished. “We have made this suggestion,” a company spokeswoman confirmed the reports on Saturday. According to the current collective labor agreement, 1.45 times the monthly wage is paid out once for 25 years of service. For 35 years, the factory has produced 2.9 times as much.
Thousands affected
Thousands of employees would be affected by the loss. The works council expects that 5,000 to 6,000 people will almost receive their anniversary bonus. In two years, more than 10,000 employees would have received a bonus.
VW has approximately 120,000 employees in Germany, half of whom are in Wolfsburg. There are a total of ten factories of the car manufacturer in the neighboring country. The company has not yet announced which and how many of them may be closed.
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.
