Car crisis: VW boss defends austerity measures – shouts of “boo” at meeting

Applause for Labor Minister Heil and the works council head Cavallo, shouts of “boos” for CEO Blume: At the works meeting in Wolfsburg, more than 20,000 people voiced their displeasure about the austerity measures at Volkswagen. While Oliver Blume defended the planned cuts, Daniela Cavallo called on the board to move away from its maximum demands. Otherwise there can be no compromise.

Labor Minister Hubertus Heil, who spoke as a guest speaker at Cavallo’s invitation, expressed clear expectations as to how the dispute over wage cuts, plant closures and layoffs should continue: “We must work together to secure the VW locations in Germany,” said the minister SPD politicians from the region, according to participants. And: “There must be no redundancies for operational reasons,” says Heil. “That’s very clear.” Heil’s constituency is right next to Wolfsburg, VW’s headquarters.

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.

Blume defends austerity measures

Blume defended the tough austerity measures at the non-public staff meeting: “The current situation is serious,” he said, according to the statement. “Therefore, urgent measures are needed to secure the future of Volkswagen.” The brand’s products are good, but the costs are too high. That has to change. “We can build the best cars in the world,” said Blume. “But that doesn’t matter if we don’t make any money from it.”

Participants report that Blume was booed by the employees as soon as he entered the crowded factory hall. Even during his speech, he was repeatedly interrupted by loud dissatisfaction from the employees. The employees chanted again and again: “Ready to strike! Nationwide!”

“We expect answers!”

The employees addressed management directly on banners. “When will the board save?” one read. “All works must remain!” was demanded on a leaflet that was posted on the podium directly under the name of the CEO.

In large letters, the employees in the room made it clear what they hoped to achieve from the CEO’s appearance: “We expect answers!” But participants reported that they didn’t really learn anything new about the company’s plans. In the end, Blume was literally booed, participants reported.

Cavallo calls for compromise

Cavallo, on the other hand, asked the CEO to make concessions. “Without both sides moving towards each other, there will be no negotiation result,” she said, according to the speech manuscript. IG Metall has taken a step towards the company with its own savings proposals. Now she expects the same from the company. “Otherwise it’s not a compromise.”

At the same time, Cavallo emphasized that factory closures, mass layoffs and cuts in monthly pay were still out of the question for employees. IG Metall had offered not to pay out a possible wage increase for the time being, but to put it into a future fund. In return, VW should refrain from plant closures and redundancies for operational reasons.

VW rejects IG Metall proposal

VW rejected this as inadequate. Blume now spoke of at least a “starting point,” but that was far from enough. “That’s why we have to continue to negotiate and work together on measurable and, above all, sustainable solutions.”

Almost 100,000 took part in the warning strike

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.

Next Monday both sides will meet for the fourth round of negotiations. Cavallo then expects a course to be decided: “Either we pull ourselves together and start seriously tackling compromises. On both sides,” she said. “Or the board insists on its position and things escalate.”

Their goal is still to reach an agreement by Christmas. But time is running out. “It’s up to the board how things will continue before Christmas,” she said in the direction of the CEO. “The ball is in your half!”