Posted on 22 Nov 2024
Labour groups at Volkswagen (VW) have proposed €1.5 billion ($1.6 billion) in additional cost cuts, amid a major expense-reduction drive by the German automaker that has led to growing disputes between workers and the management.
In a press conference on Wednesday, IG Metall trade union and the Volkswagen works council offered additional cost cuts, including through the suspension of bonuses for 2025 and 2026. However, in return, the groups have demanded the automaker reinstate job security agreements and keep its German plants open.
VW works council chief Daniela Cavallo said the management is currently targeting around €17 billion in overall cost reductions. While she acknowledged the potential need for staff reductions, the leader proposed using some money earmarked for wage increases to instead be put into a fund to help cover possible layoffs and other temporary work measures.
Thorsten Gröger, the lead negotiator for IG Metall, said that if the management goes ahead with plant closures, it would lead to industry disputes, “the likes of which this country has not seen for decades.”
The German automaker in September said it would not rule out closing factories in Germany as it struggled with falling EV sales and growing competition. Last month, Cavallo said VW was planning to close at least three plants in the country – a first in the company’s 87-year history – and cut “tens of thousands” of jobs. The company has also ended a decades-old job security programme that was set to run until the end of 2029.
Kallanish Power Materials understands VW management is set to hold a third round of negotiations with labour groups on Thursday. The period to refrain from strikes or other industry action will cease at the end of this month.
Citing the need to ensure long-term competitiveness, Ford announced on Wednesday, 2,900 job cuts in Germany. The carmaker will reduce its workforce by 4,000 employees in Europe and curb production of EVs at its Cologne plant due to weak demand.
Source:Kallanish
