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opposing plant closures and layoffs, volkswagen group union plans strike

2024-09-29

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on september 25, thorsten groeger, the chief negotiator of the german hardware union, negotiated with volkswagen group management on salary issues and threatened to hold a strike, which may affect volkswagen's plans to implement layoffs and plant closures in germany. intensity. groeger said that union employees plan to go on strike starting in early december and demand a 7% wage increase.

"volkswagen is lagging behind its competitors. the core volkswagen brand is particularly affected, and international competition poses a threat to us." arne meiswinkel, head of personnel for the volkswagen brand, said that we must work together to restructure the company, the priority now is to find a workable solution.

according to foreign media reports, on wednesday (september 25) local time, thorsten groeger, chief negotiator of the german hardware union (ig metall), the largest industrial union in europe, and the volkswagen group the management negotiated on salary issues, and the union's demand was for a 7% salary increase. groeger also said that if an agreement cannot be reached, union employees plan to strike starting in early december, which may also affect volkswagen's efforts to implement layoffs and plant closures in germany.

this comes after volkswagen announced plans to roll back decades of job protections and may close a german factory for the first time.

groeger acknowledged that volkswagen currently faces significant challenges. he also said that volkswagen's success over the past few decades has been based on solving problems together with employees, rather than confrontation. for volkswagen to tip the balance with notice and then be surprised by the chaotic status quo is a blatant violation of professional ethics and a historic mistake that will likely cost more money.

for volkswagen group ceo oliver blume, the dispute will be a major test. previously, union conflicts had become a key factor in the forced resignation of many ceos of the volkswagen group. obermue warned that volkswagen's overall costs in germany were too high and uncompetitive as european demand remained weak and chinese automakers entered the market in large numbers.

obermühne's main target for overhaul is volkswagen's underperforming volkswagen brand, whose profit margins are being squeezed by a faltering electrification transition and slowing consumer spending. volkswagen brand personnel chief arne meiswinkel said during the negotiations that the volkswagen brand must cut costs to remain competitive.

"volkswagen is lagging behind its competitors. the core volkswagen brand is particularly affected, and international competition poses a threat to us." meiswinkel said that we must work together to restructure the company, and the current priority is to find a viable solution.

earlier this month, jefferies analysts said volkswagen could pave the way for more than 15,000 layoffs this year by forcing plant closures. the analyst added, "volkswagen is considering closing two to three german plants, with up to five plants under consideration."