The Volkswagen Group is in crisis, major cuts have to be made, jobs are being cut, wages are being cut, bonuses are being scrapped. Management has remained financially unscathed so far. But that should change now.
According to a media report, Volkswagen management wants to waive salary payments of 300 million euros by 2030. In this way, management wants to participate in the group’s austerity measures, said VW Human Resources Director Gunnar Kilian in an interview with the “Braunschweiger Zeitung”.
The financial contribution of the board will be proportionately greater than that of the rest of the management and employees. He did not provide further details. Kilian also left unclear how many managers would be affected by the measure.
At the end of December, after an unprecedented marathon of negotiations with employee representatives, the German car manufacturer reached a compromise in the collective labor agreement dispute, which amounts to a deep restructuring of the traditional company.
The plan includes cutting 35,000 jobs and reducing capacity by a quarter, but initially no factory closures. The company said the deal would save more than 15 billion euros a year in costs in the medium term. The reduction in labor costs alone amounts to 1.5 billion euros per year.
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.
