To avoid layoffs, the Volkswagen works council is now prepared to waive salaries. In return, he and the IG Metall union demand guarantees for locations and employment.
One concept makes it possible to reduce labor costs by around 1.5 billion euros, says Thorsten Gröger, district manager of IG Metall. “1.5 billion euros that we put on the negotiating table.” In return, job security that ended in September must be reinstated. At the same time, the board and shareholders should make a “significant contribution”, according to the works council and the union, for example by waiving bonuses.
Management is still cautious
The VW management reacted cautiously to the latest proposals on Wednesday. “First of all, we welcome the fact that participation is a sign of openness to measures in the field of labor costs and capacity adjustments. Every suggestion that contributes to achieving the goal helps,” says Human Resources Director Gunnar Kilian.
Competitiveness is central to the group. Therefore, factory closures cannot be ruled out. Volkswagen has so far demanded a flat-rate pay cut of ten percent.
The savings target has been increased
They want to reach an agreement before Christmas. For the time being, there is still a peace obligation that expires at the end of November. Warning strikes are therefore possible from December 1.
At the end of 2023, the car manufacturer agreed with the works council on a savings program of ten billion euros. According to the association, this target has now been increased to 17 billion euros. The company is struggling, among other things, with weaker demand for cars in Europe and the slump in China.
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.
