Car crisis: VW before a turbulent works meeting in Wolfsburg

After the nationwide warning strikes on Monday, a turbulent works meeting is expected at Volkswagen today. CEO Oliver Blume is likely to be greeted with loud protests when he appears in front of the workforce this morning. At the meeting he is supposed to present the company report, as the works council announced. Federal Labor Minister Hubertus Heil (SPD) is also expected to be a guest speaker.

Works council boss Daniela Cavallo, who invited to the meeting, is expected to speak clearly against the company’s massive austerity measures. The works council expects “enormous interest” from the workforce, who are worried about their future. As a precautionary measure, the non-public meeting should be broadcast outside via video screen if there are not enough seats in Hall 11.

Just on Monday, tens of thousands protested in front of the executive board building against the company’s tough austerity plans, and 47,000 went on a warning strike for two hours in Wolfsburg alone. According to the union, there were almost 100,000 at all nine affected locations combined. There were also loud protests at the works meeting at the beginning of September. Employees welcomed the board with banners and chants. 25,000 participants were counted at that time.

VW is calling for tough cuts

Europe’s largest car manufacturer is demanding a ten percent wage cut because of the company’s difficult situation. There are also plant closures and redundancies for operational reasons. The job security was terminated. IG Metall and the works council are calling for a future concept for all locations – without plant closures and mass layoffs.

There is no sign of an agreement so far in the collective bargaining negotiations that have been ongoing since September. VW rejected a counter-concept from IG Metall and the works council for savings without layoffs and plant closures as inadequate. Both sides will meet next Monday for the fourth round of negotiations. Cavallo then expects a decision to be made: either there will be a rapprochement or there will be further escalation.

Labor Minister Heil as a guest speaker

Cavallo viewed Labor Minister Heil’s appearance at the works meeting as an “important sign of appreciation – especially now in these turbulent times.” She invited the minister many months ago, before the company’s extensive savings plans became known. Heil, whose constituency borders directly on Wolfsburg, spoke out in favor of maintaining all VW locations after the savings plans became known.

However, the works council said that no concrete statements from the SPD politician about the current wage dispute are to be expected. Politics traditionally do not get involved here.

Politicians are regular guests at VW works meetings. Federal Chancellor Olaf Scholz (SPD) arrived at the beginning of 2023, followed by his predecessor Angela Merkel (CDU) in 2008, and Lower Saxony’s Prime Minister Stephan Weil (SPD) at the end of 2021.