According to Volkswagen's works council in Germany, the automaker wants to close at least three plants and cut tens of thousands of jobs in the country. Factories that overtake reduce capacity and wages, he writes Deutsche says (DW).
"The management board of Volkswagen (VW) plans to close at least three factories in Germany," said the president of the company's works council, Daniela Cavallo, at an information meeting with employees in Wolfsburg. She added that all the remaining factories will have to reduce their capacities.
The management of the company has now informed the representatives of the employees about these plans, writes Deutsche Welle.
According to the workers' council, the factory in Osnabrik is particularly at risk, having just lost the expected new contract with Porsche. Cavallo added that the administration is planning mass layoffs: according to estimates by the workers' council, tens of thousands of jobs are at risk. Entire sectors could be closed or moved abroad.
Workertip: No factory is safe
"All Volkswagen plants in Germany are affected by these plans." None of them are safe!” Cavallo said, without elaborating.
Volkswagen employs about 120.000 workers in Germany, half of which are in Wolfsburg. VW has a total of ten factories in Germany, of which six are in Lower Saxony, three in Saxony and one in Hesse.
In September, VW terminated the job security agreement, which had been in place for more than 30 years. This makes it possible to fire workers for so-called "business reasons" starting in mid-2025.
Salary reduction by 10 percent
Volkswagen management and the IG Metal union will meet on Wednesday (October 30.10) for the second round of negotiations on the collective agreement. Already in the first round in September, VW rejected IG Metal's demands for a seven percent wage increase, insisting on savings, but did not give precise information about it.
According to Cavallo, VW is now seeking a ten percent wage cut and a wage freeze for the next two years. VW announced at the beginning of September that it no longer rules out closing factories and laying off workers.
Source: Deutsche Welle
