The German car manufacturer Volkswagen is currently in crisis. Employee salaries must be reduced and jubilee benefits must be scrapped. The head of the German trade union IG Metall has now called on management to “set a good example”.
VW CEO Oliver Blume is the best-paid DAX executive, says Christiane Benner, head of the German trade union IG Metall. In that respect, she understands the anger of many employees. According to her, a forward strategy is needed. “And that development is a management task.” For example, it is important to determine how the power stations can be used at full capacity in the future and how structural problems can be resolved.
“Wrong decisions in the past”
“Even if employees were to receive 10 percent, that would not be enough to cover the losses caused by poor management decisions in the past,” Benner is convinced.
Around September, Europe’s largest car manufacturer ended the job security program that has excluded forced layoffs for more than thirty years. The closure of entire factories is now planned. In the current collective labor agreement negotiations with IG Metall, VW is demanding a flat-rate pay cut of ten percent.
The trade unionist refuses to pay back dividends from major shareholders. “I think this is difficult both legally and morally. We need people who believe in a company and invest in it. I think it is legitimate that in good times the money flows back to these investors.”
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.
