Volkswagen: Managers see situation as 'serious', union threatens strike

Amid the conflict over new savings plans at German carmaker Volkswagen, the company and the union met for the first time in Hanover yesterday for negotiations. Positions are far apart.

While VW is seeking to save on staff costs, IG Metall wants to prevent cuts. The collective bargaining round, which was only scheduled for the end of October, was brought forward after VW tightened its austerity measures earlier in the month.

Seven percent required

At first, management reaffirmed its savings targets. “We have to restructure our company together. The situation is serious,” said Arne Meswinkel, VW’s negotiator and head of human resources for the core VW brand, before the collective bargaining talks began in Hanover. “The task now is to find viable solutions.”

Instead of just wages, the employment guarantee that Volkswagen ended must also be negotiated. IG Metall categorically rejects layoffs and plant closures for operational reasons and is demanding a seven percent pay rise for employees. It also demands job security for around 120,000 employees after 2030. The union is now threatening to strike from December.

“heat it properly”

Torsten Grüger, chief negotiator at IG Metall, said that if necessary, tens of thousands of VW employees would stand outside the factory gates and on the streets from December 1. “Winter is coming – and then, if necessary, we will heat up the boardroom,” said the unionist. The conflict with VW has only just begun.

“We cannot talk about factory closures and mass layoffs,” said Grüger. Daniela Cavallo, the head of the works council, who sits at the negotiating table for IG Metall, has previously described both as clear red lines.

“International competition threatens to overtake us,” Meswinkel warned. “That’s why we need to act now.” The first round of negotiations is about getting a common picture of the initial situation. There are far fewer cars rolling off the production line at VW plants than there were a few years ago.

information By clicking on the icon you can add the keyword to your topics.

information
By clicking on the icon, the “My Topics” page opens. You have 15 keywords have been saved and you will have to remove the keywords.

information By clicking on the icon you can remove the keyword from your topics.

Add the topic to your topics.