2024-10-28 12:15:00
“The management board wants to close at least three VW plants in Germany. It also intends to reduce the size of all remaining plants in the country,” said the chair of the group’s works council, Daniela Cavallo, in a statement. , by revealing the information transmitted to him by management. The latter did not react immediately, only calling through a spokesperson for the social partners to hold “confidential” and “internal” discussions.
According to an article in the business daily Handelsblatt, the group intends to save a total of 4 billion euros. “The next meeting for salary discussions is set for Wednesday and it is a fact that Volkswagen is at a pivotal moment in its history, the situation is serious and the responsibility of the social partners is enormous,” he said. added.
Mise en garde du chancellor Olaf Scholz
In Berlin, Chancellor Olaf Scholz, through one of his spokespersons, warned of a wave of layoffs. The government wants to wait for VW management to make a decision but “the chancellor’s position is clear, namely that employees must not suffer the impact of possible bad decisions taken by (Volkswagen) management in the past and that The priority now must be to preserve jobs,” said Wolfgang Büchner.
Transfers of activities and reduction of salaries
The plan also provides, according to her, for a 10% reduction in all salaries and their freezing in 2025 and 2026, which the daily Handelsblatt also affirmed on Monday. The press release also speaks of transfers abroad of many activities and departments of the group currently based in Germany.
The management of the automobile giant caused a shock wave at the beginning of September by announcing its restructuring project in Germany, immediately repealing the employment guarantee agreement in force for thirty years for German employees.
Conflict in sight
For the first time in the group’s 87-year history, management had threatened to close production sites in Germany itself. The works council, which represents employees and has co-management power over company strategy, was committed to fighting these plans. The German public authorities, via the regional state of Lower Saxony, where VW is headquartered, are also shareholders and have their say. Staff representatives are organizing information meetings in all VW factories in Germany on Monday to inform employees of the measures taken by management, after two months of uncertainty.
The brand is suffering from falling demand in several regions of the world, particularly in China, its main market, as well as the decline in electric vehicles, sales of which have been slipping for months.
VW will begin the second round of negotiations on a new “in-house” collective agreement on Wednesday with the industry union IG Metall. The union is demanding a 7% salary increase and better pay for apprentices, demands which remain far from the views of management. Strikes are possible at Germany’s largest industrial employer after the mandatory social dialogue period, from December.
1730151673
#Volkswagen #plans #factory #closures #Germany #thousands #jobs #risk
**Interview with Daniela Cavallo, Chair of the Volkswagen Works Council**
**Interviewer:** Thank you for joining us today, Daniela. There have been significant developments regarding Volkswagen’s plans to close several plants in Germany. Can you summarize the situation for our audience?
**Daniela Cavallo:** Thank you for having me. As you’ve noted, the management board is considering closing at least three Volkswagen plants in Germany and is looking to reduce operations at the remaining sites. This decision is driven by the need to save approximately 4 billion euros as the company navigates through a pivotal and challenging time.
**Interviewer:** What has been the reaction from the workers and the union regarding these proposed cuts?
**Daniela Cavallo:** The reaction has been overwhelmingly negative. Our primary concern is the future of our workforce. Volkswagen employs about 120,000 people in Germany, and the plans as they stand could lead to mass unemployment. We believe that these decisions could severely undermine the industrial base in the country and hurt the livelihoods of our workers.
**Interviewer:** Chancellor Olaf Scholz has expressed concern over potential layoffs and has emphasized the need to protect jobs. How has that influenced the ongoing discussions?
**Daniela Cavallo:** The Chancellor’s warning resonates with us. He rightly identifies that we must not allow past management decisions to result in job losses today. We hope his involvement might steer negotiations towards preserving jobs while finding a financial solution that doesn’t rely solely on layoffs.
**Interviewer:** Reports mention a salary reduction of 10% along with a salary freeze for the next two years as part of the proposed plan. How do you respond to that?
**Daniela Cavallo:** We’re staunchly against any form of salary reduction or freeze. Our workers have faced numerous challenges in the past years, and further salary cuts would put unprecedented strain on families. It’s crucial for management to explore other avenues for cost-saving measures that do not impact our employees directly.
**Interviewer:** What are your next steps as the chair of the works council in light of these developments?
**Daniela Cavallo:** Our immediate focus will be on communicating with our members and mobilizing their voices. We need to hold discussions with both management and government representatives to ensure that our concerns are prioritized. Additionally, we’re prepared to advocate for our workers and stand firm against decisions that threaten their jobs and livelihoods.
**Interviewer:** Thank you, Daniela, for sharing your insights. We appreciate your time and wish you the best in your efforts to protect the workforce.
**Daniela Cavallo:** Thank you for the opportunity to speak about this critical issue.
**Interviewer:** Thank you for joining us today, Daniela. There have been significant developments regarding Volkswagen’s plans to close several plants in Germany. Can you summarize the situation for our audience?
**Daniela Cavallo:** Thank you for having me. As you’ve noted, the management board is considering closing at least three Volkswagen plants in Germany and is looking to reduce operations at the remaining sites. This decision is driven by the need to save approximately 4 billion euros as the company navigates through a pivotal and challenging time.
**Interviewer:** What has been the reaction from the workers and the union regarding these proposed cuts?
**Daniela Cavallo:** The reaction has been overwhelmingly negative. Our primary concern is the future of our workforce. Volkswagen employs about 120,000 people in Germany, and the plans as they stand could lead to mass unemployment. We believe that these decisions could severely undermine the industrial base in the country and hurt the livelihoods of our workers.
**Interviewer:** Chancellor Olaf Scholz has expressed concern over potential layoffs and has emphasized the need to protect jobs. How has that influenced the ongoing discussions?
**Daniela Cavallo:** The Chancellor’s warning resonates with us. He rightly identifies that we must not allow past management decisions to result in job losses today. We hope his involvement might steer negotiations towards preserving jobs. The emphasis on safeguarding employment is crucial as we engage in discussions with management.
**Interviewer:** There have also been reports of salary reductions and the transfer of activities abroad. How are you and your union planning to address these issues?
**Daniela Cavallo:** This is definitely a troubling aspect of the management’s plans. A 10% salary reduction and the freezing of wages for the next two years can create significant financial strain for our members. We are committed to fighting these proposals and advocating for fair compensation. The union is engaged in discussions with the management to ensure that our workforce is not sacrificed for short-term financial targets.
**Interviewer:** There seems to be a looming conflict, especially with the possibility of strikes as negotiations progress. What are the next steps for the union?
**Daniela Cavallo:** We are prepared to take all necessary actions to protect our members’ rights and jobs. Our next step will be to gather feedback from workers in all VW factories during our information meetings. We will assess the situation closely and decide on a unified approach that could include strikes if we find that the management remains unwilling to negotiate fairly.
**Interviewer:** Thank you, Daniela, for sharing your insights on this critical issue for Volkswagen and its employees.
**Daniela Cavallo:** Thank you for having me. It’s vital that we keep pushing for a future that safeguards the interests of our workers while ensuring the sustainability of the company.
