Automaker Volkswagen plans to close at least three plants in Germany, cut tens of thousands of jobs and cut wages by 10 percent, with no raises over the next two years. Daniela Cavallová, the head of the Volkswagen works council, said on Monday that she will write the day Financial Times.
The restructuring of the company would mark the first closure of domestic plants in the company’s 87-year history and would also start a battle with the unions. Volkswagen is concerned in Germany Financial Times ten plants and 300,000 employees. According to the unions, the plant in Osnabrück, which recently lost a promising contract from the car manufacturer Porsche, is particularly at risk, ČTK wrote.
A radical change is needed, according to the largest European car manufacturer. The industry faces strong competition in China, slowing sales in key markets and must also manage a costly transition to electric cars.
The German automaker said on Monday it would not comment further on the situation due to “confidential discussions with (union, editor’s note) IG Metall and the works council”. At the same time, she said she is at a “tipping point”.
The company’s race council represents the company’s employees and has half of the seats on the board of directors.
The company’s management has two days to reverse its plans, Cavall said Monday at an event at the company’s headquarters in Wolfsburg. In the spot, she told the workers about the management’s plans and at the same time she threatened strikes.
On Wednesday, the company’s management and the IG Metall trade union will meet for the second round of talks on the internal wage agreement. In the first round in September, VW rejected IG Metall’s demands for a seven percent wage increase and instead asked for savings, ČTK recalled.
2024-10-28 11:45:00
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