Final negotiations between Volkswagen and the unions. The company's management withdrew its demand for a 10 percent wage cut and promised that there would be no immediate closings or layoffs. However, the company will cut 35,000 jobs in the long run.
According to Reuters, it was the longest negotiation between the company and unions in Volkswagen's 87-year history. The company has pledged not to immediately shut down manufacturing plants or lay off workers. He also dropped his demand for a 10 percent pay cut. Union leaders described the deal as a “Christmas miracle.”
However, the automobile concern is facing serious changes. According to Reuters, Volkswagen also announced “fundamental changes to its operations in Germany.” In particular, the reduction of the “dignity” of production capacity and the layoff of 35,000 workers by 2030.
Great savings
Volkswagen has been in talks with union officials since September over measures the company says is aimed at competing with cheaper Chinese rivals and combating weak demand in Europe and a slowdown in electric vehicles.
Last month, around 100,000 workers already staged two separate strikes, the largest in Volkswagen's history, to protest cost-cutting plans.
– The agreement is an important signal about the future profitability of the Volkswagen brand, said Oliver Blume, CEO of the Volkswagen Group.
VW said in a statement that the implementation of the latest version of the plan would lead to annual savings of 15 billion euros in the medium term, although the plants were not immediately closed, VW said it was considering various options for the future of Dresden. the plant, where the production of cars will end by the end of 2025, and about the plant in Osnabrück while looking for a buyer.
Production at VW's largest plant in Wolfsburg will be limited to two of the four assembly lines.
The IG Metall trade union has announced that a 5% wage increase has been agreed for November. is suspended. VW AG employees will also receive no pay for the next four years under the collective agreement, and some bonuses will be withdrawn or reduced.
Eliminating 35,000 jobs means reducing employment by a quarter.
IG Metall's chief negotiator, Thorsten Groger, said the layoffs were part of a plan to reduce overcapacity. He expressed hope that they will be implemented in a socially responsible manner.
The German chancellor called this agreement “a good socially acceptable solution”. – Today is not an easy time for Volkswagen employees, said Olaf Scholz, quoted by dpa.
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