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volkswagen ends 30-year-old employment guarantee agreement, paving way for layoffs

2024-09-11

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it home reported on september 11 that volkswagen said on tuesday that it would abolish a series of labor agreements, including agreements to guarantee employment at six german factories until 2029, increasing the possibility of layoffs at the company next year, and union representatives have vowed to resist layoffs.

image source: pixabay

as part of a cost-cutting drive, volkswagen said it was ending a more than 30-year-old employment guarantee agreement that was supposed to protect jobs until 2029 but will now end in the middle of next year.

it home noticed that just last week, volkswagen announced that it was considering closing its car production and parts factories in germany to cut costs, which aroused concerns among senior german government officials.

"we must reduce volkswagen's costs in germany to a competitive level in order to use the savings to invest in new technologies and products," volkswagen labor chief gunnar kilian said in a statement.

to address uncertainty over a labor agreement, kilian said volkswagen was proposing to bring forward wage talks. such talks were originally scheduled to begin in mid- to late october, with strikes likely to start in late november, but unions have called for talks to begin this month.

the head of the company's union pledged to resist layoffs and plant closures and blamed management for volkswagen's problems.

the ig metall union has previously said it could consider a four-day work week as an alternative to plant closures, following a cost-cutting move in the 1990s.

volkswagen has about 650,000 employees worldwide, including nearly 300,000 in germany. "we will fiercely resist this historic attack on our jobs," daniela cavallo, volkswagen's chief employee representative and head of the union, said in a separate statement. "as long as we are here, there will be no layoffs."