Volkswagen is embroiled in a tense negotiation with the IG Metall union over proposed wage cuts, plant closures, and potential layoffs. The union is threatening warning strikes at nine out of ten of VW's German plants to pressure the company into concessions. The works council chairwoman, Daniela Cavallo, stands firmly against the closures and layoffs, emphasizing the urgency of reaching an agreement before Christmas.
IG Metall has proposed foregoing wage increases in exchange for a future fund and cost relief worth 1.5 billion euros, a proposal rejected by VW CEO Oliver Blume as insufficient. The union also demands the adoption of the pilot agreement for the metal and electrical industry, along with a waiver of bonuses and dividends by management and shareholders.
Despite these tensions, VW aims to mitigate the impact of the strikes by implementing emergency supply measures. The strikes are seen as an effort to compel the company to maintain employment security amid weak electric vehicle sales and strategic missteps. Critics, including Chancellor Olaf Scholz, caution against plant closures and urge VW to focus on advancing electric mobility instead.
The situation remains precarious, with potential for significant image damage if prolonged. As negotiations are set to continue, all parties are keenly aware of the narrowing timeframe to reach a resolution that satisfies both the workforce and the company's financial constraints.
