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Volkswagen discontinues collective bargaining agreements – Dulig expresses fear: "This is alarming"

The ongoing controversy surrounding VW's new savings schemes brings forth initial details: The long-standing job security guarantee, in place since 1994, has been discontinued by the company. Saxony's Economic Minister voics her disapproval of this decision.

Martin Dulig, the economic minister representing the SPD in Saxony, calls for Transparent...
Martin Dulig, the economic minister representing the SPD in Saxony, calls for Transparent assurances from Volkswagen concerning the safety of its Saxon sites.

- Volkswagen discontinues collective bargaining agreements – Dulig expresses fear: "This is alarming"

Volkswagen's Top Executive in Saxony, Martin Dulig, has slammed the car giant's decision to scrap job security. According to Dulig, who is a member of the SPD party, this move is worrisome as it directly impacts the job and plant security.

The titan of European automobile industry officially scrapped the job security agreement, which had been in effect since 1994, as per a statement released on Tuesday. The contract will therefore expire at year-end. Six months later, from July 2025 onwards, layoffs due to operational reasons will be permissible.

Besides scrapping the job security agreement, Volkswagen also terminated several other accords, such as the apprenticeship takeover guarantee and regulations concerning temporary employment.

Volkswagen had hinted a week prior about scrapping the job security and even left the option of plant shutdowns on the table. However, the company had not specified any timeline for this change.

Early Collective Bargaining Talks

Now, Volkswagen wants to hasten negotiations with the works council and labor union about a new agreement, according to Personnel Director Gunnar Kilian. The collective bargaining talks for the Volkswagen wage agreement, which were originally scheduled for October, will now be brought forward and expanded to include the agreements that have been cancelled. IG Metall had previously proposed this.

Dulig vowed to support the Volkswagen plants in Zwickau, Chemnitz, and Dresden: The Saxon government will continue to strive to ensure security for these locations and prevent layoffs due to operational reasons. "We want Volkswagen to assure us that these locations are secure," Dulig said, asserting that management blunders should not be passed on to the employees.

The decision by Volkswagen to end the job security agreement has led to concerns about employment stability within the company. This termination also includes the apprenticeship takeover guarantee and regulations concerning temporary employment.

In response to Volkswagen's actions, Top Executive Martin Dulig has emphasized the need for the company to guarantee job security at their plants in Zwickau, Chemnitz, and Dresden.

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