Workers unions in Germany have proposed that Volkswagen delay wage increases to save manufacturing plants in Germany.
According to a November 20 report by Bild, IG Metall and the VW Works Council have offered to defer a planned 7 per cent wage rise, asking instead for the cash to be reinvested in the company.
This “future fund” would reportedly be used to prevent planned plant closures as well as involuntary redundancies.
To this end, the firms are also asking that shareholders contribute to the fund, arguing that such contributions were necessary to get ordinary workers on board with the rescue plan.
“Without these contributions, there will be no willingness on the part of employees,” VW Group Works Council chairwoman Daniela Cavallo said, pushing the company to get back to basics.
“We see a lot of adjustments that we can make to reduce costs without having to call entire locations into question.
“We need significant leaps, especially in the areas of software, on-time launches and customer acceptance. Everything that is not relevant to our technological leadership and therefore not a deciding factor for our customers needs to be reconsidered,” she added.
The union declaration came after Volkswagen announced it was planning to close three of its factories in Germany, putting tens of thousands of jobs in the country at risk.
Other facilities there will be downsized in the hope of cutting costs.
One of the reasons for the reduction in production capacity appears to be the transition towards electric cars, with VW struggling to compete with US and Chinese rivals in the sector.
High energy costs and a weak German labour market have also caused the company problems, reducing its competitiveness at an international level.
Volkswagen’s recent shock announcement to cut tens of thousands of jobs, was not an isolated event but part of a much bigger crisis, according to Hildegard Müller, president of the German Association of the Automotive Industry. https://t.co/0nCR7UJKNx
— Brussels Signal (@brusselssignal) October 29, 2024
