Volkswagen, Europe’s largest automaker, failed to make a breakthrough in negotiations with the German metal workers union IG Metall on wages and an unprecedented plant closure plan in Germany, Reuters reported.
The company’s union said it was preparing to go on strike at German factories from December 1.
Photo: Volkswagen, IG Metall asked Volkswagen to take a “big step” in the third round of negotiations, but IG Metall said the positions of the two sides were still far apart at the end of the third round.
Volkswagen Group has about 300000 employees in Germany, of which 120000 are employed in six factories and have signed separate collective wage agreements.
In the negotiations between the union and the company, thousands of employees gathered to discuss the salary issue.
The union noted that Volkswagen Group management had not put forward any new proposals except to question its proposed plan to save 1.
5 billion euros through measures such as reducing working hours and abandoning bonuses.
However, the two sides will continue negotiations on December 9.
The union said on November 20th that it was acceptable to reduce working hours to retain more jobs and to include some of the planned wage increases and bonuses for 2025 and 2026 into a “future fund”.
Volkswagen Group had proposed a 10% pay cut on the grounds that it needed to cut costs and increase profits in order to maintain its market share in the face of fierce competition from China and slowing demand for cars in Europe.
The company is also considering closing its plant in Germany for the first time in history.
Volkswagen Group said it was pleased to see that workers were willing to consider cutting labor costs and production capacity.
But the company added that any salary agreement must provide “sustainable financial relief”.
Arne Meiswinkel, head of personnel for the Volkswagen brand, said: “in order to ensure the competitiveness of the Volkswagen Group, it is still critical to continue to achieve financial targets in a very challenging phase of the German auto industry.
” Thorsten Groeger, a negotiator for the IG Metall union, said: “Volkswagen still wants to evaluate our proposal, which is legal, but the company has also made it clear that it has not ruled out eventual plant closures and mass layoffs.
” However, Thorsten Groeger has hinted that it is willing to accept the sale of Volkswagen’s German plant to buyers outside the Volkswagen Group to prevent layoffs and plant closures.
“for us, this is about realizing the long-term prospects of all factories, ensuring employment and preventing layoffs.
” At the same time, IG Metall also signaled to shareholders to reduce the dividend, but did not want to cancel the dividend altogether, but did not specify the amount.
A report by Stifel analysts said: “the union specifically mentioned that Volkswagen Group shareholders must also contribute, that is, the dividend policy must be adjusted.
” Claudia Jobe, a member of the labour committee at Volkswagen’s Hanover plant in Germany, said that since she joined Volkswagen in 1991, the company’s management had changed its attitude and began to make decisions unilaterally for the benefit of shareholders rather than workers.
The strike in December will be Volkswagen’s first large-scale strike since 2018, when more than 50,000 workers took part in demonstrations over wages.
Workers will initially stage a so-called “warning strike” that will last for several hours.
Union members can then vote to increase the duration of a “warning strike” to 24 hours or more.
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