Volkswagen bosses and workers’ representatives began crucial talks on Wednesday over drastic cost-cutting plans at the beleaguered German carmaker, with thousands of workers staging a strike and unions vowing “bitter resistance”.
Europe’s biggest carmaker shocked employees earlier this month when it said it was weighing the unprecedented step of closing factories in Germany as well as deep job cuts.
The move has sparked outrage from staff representatives, who accuse VW’s corporate leaders of mismanaging the 10-brand group and putting profits ahead of creating a sustainable future for the manufacturer.
The problems at Volkswagen are a heavy blow to Chancellor Olaf Solz’s government at a time when the domestic economy is already struggling.
After Volkswagen’s bombshell announcement, negotiations on a new pay deal were brought forward by a month.
The Volkswagen crisis pits domestic leaders against each other
Ahead of the talks in Hanover, Thorsten Groeger, chief negotiator for the IG Metall union, told the gathered workers that it was the first time in decades that management was weighing “site closures and mass redundancies.”
He charged that VW management, which had already moved forward with a deal to protect decades of jobs, was trying to scare off staff as it tried to push ahead with cuts.
“Anyone who sows fear and plays with the future of our colleagues will reap fierce resistance,” Gregor promised. “You don’t build the future with fear – you destroy it with fear.”
“serious condition”
Daniela Cavallo — head of VW’s powerful works council — warned that unions still retain a “strong influence” at Volkswagen.
“At Volkswagen, profitability and job security are corporate goals of equal rank,” she said in a speech as some 3,000 workers gathered outside the building in Hanover, waving IG Metall flags and banners.
High costs, China slowdown: VW’s dangerous road ahead
He admitted that VW is “currently facing serious problems on the financial side”, but added that workers had shown they were “willing to compromise” in the past.
Volkswagen has been hit hard by high manufacturing costs, a shift to electric vehicles and growing competition in its core market of China.
Arne Meiswinkel, who is leading the negotiations for Volkswagen, said the carmaker faced a “serious situation”.
“We are in danger of being overtaken by international competition,” he said.
“Therefore, we must take action. To remain competitive, we must completely restructure Volkswagen together now.”
The first round of talks on Wednesday was aimed at assessing “the initial situation”, he added.
The negotiations will determine employment terms for around 120,000 workers in Germany, most of whom work at the core VW brand.
The Volkswagen Group also includes a number of other brands, from Seat and Skoda to Porsche and Audi.
Source: AFP