Job cuts at VW move closer
VW, the car giant from Lower Saxony, imposed a cost-cutting plan on itself some time ago. It is to be extensive and also affect the workforce. The management is now making it clear that the Group will not be able to avoid job cuts.
Volkswagen brand boss Thomas Schäfer is preparing the workforce for possible job cuts. The VW brand is no longer competitive with its current structures, processes and high costs, said Schäfer in a statement published on the intranet at a general meeting of shop stewards at the Wolfsburg site. It would not work without noticeable cuts. "We have to tackle the critical issues, including personnel."
VW Board Member for Human Resources Gunnar Kilan brought up the subject of partial retirement. "We must consistently see the demographic curve as an advantage," he said. However, the majority of the savings will be achieved through other measures, he said. The two top managers left open how many jobs would be cut. Head of the Works Council Daniela Cavallo emphasized that there should be no departure from the collective agreements and job security until 2029.
Management and the works council are currently negotiating the efficiency program, which is expected to generate a total of ten billion euros. No decisions have yet been made, according to the message on the intranet. At a works meeting in Wolfsburg on December 6, the employees are to be informed about the interim status. The aim of the negotiating parties is to have the key points agreed before the end of the year.
Volkswagen's cost-cutting plan, imposed due to its competitive struggles and high costs, includes potential job cuts. Amidst this austerity policy, the company's Human Resources Board Member has mentioned the possibility of partial retirement as a potential cost-saving measure, although the majority of savings are expected to come from other measures.
Source: www.ntv.de
