According to foreign media reports, a German government official revealed on September 3 that German Economy Minister Robert Habeck was working with Volkswagen after Volkswagen announced that it was considering closing two factories in Germany and plans to cancel a employment guarantee plan.
, Habeck said in a statement that responsibilities to workers must be taken into account when making similar business decisions.
Habeck added: “Companies must consult closely with social partners when making decisions and must keep in mind the goal of ensuring that Germany continues to be a strong automotive center.
“, Volkswagen considered closing its German factory for the first time on September 2, a move that showed the company is facing increasing price pressure from Asian rivals.
Photo source: Volkswagen, the move also marks the first major conflict between Volkswagen Group CEO Oliver Blume and the influential Volkswagen Union.
Analysts have said Oliver Blume is better at building consensus, unlike his predecessor Herbert Diess, who often clashed with unions.
Volkswagen believes a large German car factory and a parts factory are old and obsolete, but the company’s labor committee has vowed to “strongly resist” Volkswagen’s executive board’s plans.
Volkswagen Chief Financial Officer Arno Antlitz and Volkswagen Brand Head Thomas Schaefer will address employees at the Volkswagen Labor Council meeting on the morning of September 4.
, Daniela Cavallo, chairman of Volkswagen’s Labour Council and a member of IG Metall, Germany’s largest industry association, hopes Oliver Blume will also be involved in the negotiations, adding that the September 4 meeting “will not be easy” for Volkswagen Group management.
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