|
Politics
|
Union Protests Challenge Volkswagen's Wage Plans
2024-11-21 05:40:09
Automotive
Business

Union Protests Challenge Volkswagen's Wage Plans

Image courtesy of : AFP (FOCKE STRANGMANN)

IG Metall is actively protesting Volkswagen's proposed wage cuts and potential plant closures. The union advocates for a future fund, suggesting the next wage increase be allocated there, with Volkswagen agreeing not to dismiss employees.

They demand Volkswagen adopt the pilot agreement from the metal and electrical industry. Lower Saxony's state government, represented on Volkswagen's supervisory board, supports this initiative.

Although a peace obligation remains in effect until the end of November, strikes could ensue afterward. The collective agreement impacts around 125,000 employees across six major West German Volkswagen sites.

Thousands are expected at a protest rally in Wolfsburg, coinciding with the wage negotiations. Lower Saxony's Economic Minister Olaf Lies encourages swift solutions to secure jobs and avoid closures.

The union plans a demonstration to pressure Volkswagen into considering cost-saving measures without layoffs, aiming to achieve a compromise that could save 1.5 billion euros.

Related news on that topic:

VW and Unions at Crossroads Over Wage Proposals

Volkswagen (VW) and the IG Metall union are currently engaged in tense negotiations over wage restructuring, with significant implications for the company's future operations and workforce stability. IG Metall has proposed a plan to avoid job cuts by temporarily redirecting the next wage increase into a future fund. This proposal is modeled after a 5.1% wage hike agreement in the metal and electrical industry. In contrast, VW is seeking a 10% wage reduction, emphasizing that plant closures remain a possibility if economic stability and competitiveness are not assured. The union, along with the VW works council, is determined to prevent plant closures and layoffs by offering up to 1.5 billion euros in savings through a temporary wage freeze. They demand guarantees for job security and plant operations, especially for key locations in Niedersachsen, Hessen, and Sachsen. Meanwhile, VW's management has not ruled out the possibility of outsourcing and departmental shutdowns due to decreased demand and underutilized factories. Both parties are set to meet again to discuss these proposals in detail. The union warns of potential strikes starting December 1 if an agreement isn't reached. These negotiations are critical as they will not only influence the financial health of VW but also the livelihoods of approximately 125,000 employees. The outcome will likely set a precedent for labor relations and cost management strategies in the broader automotive industry, which is undergoing significant change amid shifting market demands and technological advancements.

VW's Strategic Roadmap Amidst Crisis

Volkswagen is currently navigating a challenging crisis, and the company is focusing on implementing a comprehensive strategy to secure its future. The Master Plan 2025-2030-2035, presented by IG Metall and the Works Council, is a blueprint aimed at revitalizing VW by enhancing product offerings, developing an affordable electric vehicle, and concentrating on technological leadership. This plan emphasizes reducing unnecessary documentation and brand duplications, realigning control models with a focus on the Volkswagen brand, and investing in plant innovation. A significant component of the plan involves a proposed future fund designed to prevent plant closures by financing working time reductions at underutilized locations. This fund represents a shift from traditional crisis management approaches, such as the four-day workweek seen in 1993. Instead, the fund offers flexibility to prevent layoffs at vulnerable sites, encouraging solidarity among employees and management alike. IG Metall suggests that even executives should contribute to this fund by foregoing bonuses. However, Volkswagen's financial targets are ambitious, with necessary savings pegged at ten billion euros by 2026. The company is seeking widespread agreement on a ten percent wage reduction across its workforce. While the proposed wage sacrifice by IG Metall and the Works Council signals an openness to compromise, Volkswagen's management remains cautious. Experts have lauded the union's proposal as a meaningful step, yet achieving consensus will require extensive negotiations. As Volkswagen strives to adapt to the electric mobility shift, the company is urged to invest heavily in digitalization and electrification. While the future of certain combustion engine plants remains uncertain, strategic investment and innovation will be crucial for Volkswagen's success in the evolving automotive landscape. The ongoing talks between the union and management are expected to be arduous, with a resolution likely months away.

Read 12 more recent news on this topic

The press radar on this topic:

Frankfurter Rundschau
21. November 2024 um 03:32

IG Metall Wage Negotiations at Volkswagen: Union Protests to Exert Pressure

Economy
Politics
IG Metall is protesting against Volkswagen's plans for wage cuts and plant closures. They propose a future fund into which the next wage increase should be paid. In return, Volkswagen should refrain from dismissals. IG Metall demands that Volkswagen adopt the pilot agreement of the metal and electrical industry. The state government of Lower Saxony, which is represented on Volkswagen's supervisory board, supports the initiative. At Volkswagen, a peace obligation is still in effect until the end..
Tagesspiegel
21. November 2024 um 03:32

Volkswagen Crisis: VW Collective Bargaining: IG Metall Puts Pressure with Protest Rally

Economy
Politics
IG Metall increases pressure on VW with a protest rally; The employee side proposes a future fund to prevent plant closures and dismissals.
zeit
21. November 2024 um 00:00

Automotive Industry: Lies Demands Rapid Results at VW

Economy
Politics
Lower Saxony's Minister of Economic Affairs, Olaf Lies, welcomes the future plan of the works council and IG Metall at VW; he expects that the management will examine the proposals constructively and quickly develop solutions to secure jobs and avoid plant closures. Today, IG Metall and VW are meeting for the third collective bargaining round to discuss new proposals from the employee side to reduce labor costs without layoffs.
gmx
21. November 2024 um 00:02

Lies fordert rasche Ergebnisse bei VW

Wirtschaft
Finanzen
Politik
Der SPD-Politiker Niedersachsens Wirtschaftsminister Olaf Lies begrüßt den Zukunftsplan von Betriebsrat und IG Metall bei VW; Management und Betriebsrat müssen rasch Lösungen erarbeiten, um Arbeitsplätze zu sichern und Standortschließungen zu vermeiden; IG Metall plant eine Demonstration vom VW-Werk zur Volkswagen Arena, um über Vorschläge zur Senkung der Arbeitskosten ohne Entlassungen in der dritten Tarifrunde zu beraten.
CW

Account

Waiting list for the personalized area


Welcome!

InfoBud.news

infobud.news is an AI-driven news aggregator that simplifies global news, offering customizable feeds in all languages for tailored insights into tech, finance, politics, and more. It provides precise, relevant news updates, overcoming conventional search tool limitations. Due to the diversity of news sources, it provides precise and relevant news updates, focusing entirely on the facts without influencing opinion. Read moreExpand

Spotlighting today's most mentioned stocks in the media. Uncover the stories making waves in the stock market:

A closer look at the individuals who are leading today's news narratives. Find out what makes them the center of attention.

Exploring the five locations receiving the most media attention in the last 24 hours. Discover what puts these places in the global spotlight

Your World, Tailored News: Navigate The News Jungle With AI-Powered Precision!

News

All News
Politics
Technology
Economy
Business
Climate

About

About Us
Team + Mission

Legal

Cookie Settings
Disclaimer
Legal Notice
Data Privacy

Contact

Contact