- The Leading Figure, Weil, Urges expedited Discussions over Volkswagen's Predicament
In the Volkswagen predicament, the Lower Saxony Leader, Stephan Weil (SPD), promptly urged for negotiations between management and labor delegates. Following a period of public discourse, both parties ought to now team up to uncover strategies to improve the company's competitiveness, Weil shared after a gathering with the VW works council at the Emden plant in East Frisia. "That's the crystal-clear expectation that Lower Saxony now has for the management, and the workers' delegates too: To get down to business and chat frankly with each other very soon." Lower Saxony is eager to facilitate this process. "We're pretty pumped about a rosy future for Volkswagen in Lower Saxony."
Weil also mentioned that VW has navigated numerous hardships throughout its history. "Thus far, it's consistently managed to strike mutual agreements between the board and the workforce, and I don't see why that can't happen now." The strategies to bolster competitiveness should now be on the table. "These discussions shouldn't be occurring in the limelight."
Minister President is a Member on the VW Supervisory Board
Weil spent nearly an hour at the Emden VW plant engaging with works council and IG Metall trade union representatives earlier. "It's apparent that the events of the past week have instilled a sense of worry at Volkswagen, even in places like this one," said Weil. Approximately 8,000 people are employed at VW in Emden, making it the most prominent industrial employer in the district.
Lower Saxony owns 20% of the voting rights within the VW group. Minister President Weil and his deputy, Julia Willie Hamburg (Greens), sit on the supervisory board for the state. In conjunction with the employee delegates, they hold a majority; in significant decisions, the state enjoys a veto power.
VW recently announced that substantial cost savings were necessary at the flagship brand. Previously planned layoffs through early retirement and severance packages were no longer sufficient. Plant closures and redundancies at the core brand VW were no longer out of the question, Europe's largest car manufacturer had indicated. On Tuesday, the company nixed the job security guarantee that had been in effect since 1994, making layoffs possible from July 2025.
The manufacturing sector at Volkswagen is under scrutiny, with the company seeking ways to enhance its competitiveness. Lower Saxony, as a significant shareholder, is actively encouraging open discussions between management and labor delegates to explore these strategies privately.
