Negotiations still ongoing between unions and Volkswagen. The agreement is nearing completion, but there is still the risk of one factory closing, while another could be sold. Unions and workers have not stopped threaten an escalation of strikes; the ultimatum is to find an agreement (even with compromises) by Christmas. The direction seems to be to reduce the number of factories closed permanently, the Dresden plant remains in the balance, while another could be sold.
Agreement with unions: Volkswagen tries to avoid escalation of strikes
Meetings between unions and Volkswagen managers continue in search of an agreement. After days of negotiations, the latest meeting seems to have led to a provisional agreement.
The possibility emerges that Volkswagen took a step back from the initial threat to close three factories Germania. Only one plant would remain at risk, namely that of Dresden. This could be repurposed to keep it running or it could be the sacrificial victim of the automotive crisis. For the installation of Osnabruckthe plan could be to sell, while the other two threatened factories, namely those of Zwickau ed Emdenthey are safe.
What is the compromise?
The negotiations between the company and the unions went on for over 60 hours, becoming the longest negotiation in Volkswagen's history. The compromise still needs to be examined, not only by the supervisory board and the employee bargaining committee, but also by the board of directors, which is the main supporter of drastic solutions.
We're talking about right now compromise because the possibility of restoring a form of employment guarantee for the company's 120,000 employees. Renewing the agreement is necessary, especially because the last one was stipulated in 1994 to suspend collective dismissals and then revoked last September.
However, the company needs to reduce i costs and, if it cannot do so by closing the plants, it will be necessary to find others ploy. One measure designed to reduce costs is to move production of the Golf from the headquarters to Mexico and to stop the production of electric vehicles at the Zwickau plant. To make up for the lack of production, a car recycling project could be implemented in the factory. This would lead to confirmation of 1,000 jobs.
Reduction of labor costs: continuous clash
The family Porsche-Piechwhich holds 31.9% of Volkswagen, would push for the closure of the factories. This is in fact the safest way to reduce costs. Volkswagen must in fact reduce costs by 17 billion over the next two years, of which a good part is due to labor cost. This is why we still talk about reducing the labor cost of 10%.
There is still a lot to discuss on this point, as the unions oppose the closure of the plants and offer a reduction in the alternative labor cost with the time cut. If there is no agreement, Ig Metalli he has already threatenedescalation of strikes in 2025. The threat has the consistency of over 100,000 employees who have already folded their arms twice and these strikes are not without costs. Second Patrick Hummelby Ubs, strikes can cause the group to lose up to 100 million euros a day. A price that Volkswagen cannot afford.
The German government also raised its voice against Volkswagen's decisions. Outgoing Chancellor Olaf Scholz intervened by saying that they cannot pay employees for bad decisions made by managers, i.e. those who generated the crisis. Even the minister of economy Robert Habeck called the group to think about solutions, how to make the electric cars more accessible with one cost reduction. After all, he reminds the company, “your name is the people's car, not the luxury car.”
