Workers with organized labor IG Metall took a remarkable action on Wednesday, supplying to take pay cuts in order to prevent mass lay-offs and plant closures prepared by German carmaker Volkswagen.
Ahead of the following round of cumulative negotiating talks, the union and the VW employees’ council supplied to minimize labor prices by EUR1.5 billion ($ 1.6 billion). In exchange, workers were looking for assurances on task safety and security and the future of the firm’s 9 manufacturing facilities throughout Germany.
If their needs aren’t fulfilled, the union has actually suggested that a significant strike might be impending.
“Because sustainable solutions are needed, we are now going on the offensive and presenting a solution concept,” stated employees’ council chairwomanDaniela Cavallo “It is a counter-model to the board of management’s plan to cut jobs, which prevents the future instead of creating it.”
Cavallo additionally recommended that top monitoring forgo their bonus offers to reduce the firm’s alarming economic straits.
Why is Volkswagen battling?
In September, the battling vehicle titan introduced that it would certainly shut 3 plants as component of prevalent cost-cutting steps and not a historical, charitable pension.
Labor teams have actually sworn to satisfy sweeping lay-offs with mass resistance.
Since 2019, German vehicle firms have actually lost regarding 46,000 work among a change to creating extra electrical lorries. Competition from less costly Chinese EVs and a basic financial despair in Germany has even more harm the vehicle market.
In October, Volkswagen introduced a 64% earnings downturn and its choice to shut 3 plants, motivating an objection from employees.
The firm states it means to reduce some EUR18 billion from its budget plan.
es/sms (dpa, Reuters)
