After a strike wave that paralyzed activity for several days, the conflict between the Volkswagen automaker and the union that represents workers in Germany begins a key week
The forceful measures began to be applied a few weeks ago, when the president of the group’s works council, Daniela Cavallo declared that “The board wants to close at least three VW plants in Germany. It also aims to reduce the size of all remaining plants in the country,”
The plan, presented by the management of the manufacturer of carsincludes a 10% salary cut for all employees and the transfer of numerous group activities abroadcurrently in Germany, indicated the president of the works council in a statement.
For example, one of the models that could move its production from Germany to another country is the successful Golf. The Mexico plant is one of the candidates.
The conflict stage is causing million-dollar losses to the automaker, which is the largest automobile manufacturer in Europe. According to specialist estimates, two hours of production interruption at its main plant in Wolfsburg can generate losses between 400 and 600 daily cars.
These figures not only represent a economic loss directly, but also affect Volkswagen’s image and position in the market.
The strike coincides with the resumption of negotiations for the review of the collective agreement
The CEO of Volkswagen, Oliver Blumeaddressed 20,000 Volkswagen workers at its Wolfsburg headquarters last week to explain the need to apply wage cuts and close factories, but his explanations fell on deaf ears and was booed.
The manager confronted the workers in a heated meeting in which he tried to justify aggressive staff and salary reductions, since Automaker aims to cut costs by €10 billion amid strong competition from Chinathe fall in global sales and the increase in production costs.
Today and tomorrow there will be important meetings between the parties with the aim of reaching some type of solution before the closure for the end of the year holidays.
The company and the unions have expressed their interest, at the beginning of the fifth round of collective bargaining negotiations in Germany, to “not let any more time pass” and reach an agreement before Christmasalthough the positions continue to be very far apart.
The negotiator and director of human resources at Volkswagen, Arne Meiswinkel, warned about the “urgent need to act” and asked not to let more time pass, according to the German media NRD.
“Now the goal is to find a solution together. This is our common responsibility,” Meiswinkel told reporters.
In any case, the executive clarified that any proposal must have cost reduction as a condition.
For his part, Cavallo considered that it was “urgent” the agreement: “We do not want to go on Christmas holidays with this uncertainty, with the fear of whether there will be layoffs, whether there will be factory closures.”
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Source: Ambito
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