Volkswagen unveils agreement for collective job security measures.
The Volkswagen Group's flagship brand, VW AG, officially ended the Future Tariff Agreement on December 31st of this year. Consequent to this, a transition period is anticipated, during which job security will remain intact for an additional half a year, extending up to June 30, 2025. This interval offers the chance for Volkswagen and its employee representatives to collaborate on devising strategies that will make the company more eco-friendly and resilient, as stated by Kilian.
The administration of VW, within the Volkswagen Group, announced a stringent fiscal belt-tightening strategy last week, contemplating potential plant shutdowns and layoffs adjacent to business demands. Chief Executive Officer of the Group, Oliver Blume, attributed the challenging circumstances in the European auto market and the declining competitiveness of German production plants as the main factors.
Kilian, too, reiterated this perspective on Tuesday. "In its current form, with its current expenses, the Volkswagen AG won't be able to sustain its existing employment structure." He emphasized that Volkswagen must enhance productivity and significantly curb costs, specifically at German manufacturing sites.
In total, six collective labor agreements, including the training agreement, were reportedly dissolved by Volkswagen AG on December 31st of this year. The agreement stipulates that the company should provide 1400 internship opportunities annually. With the termination, a rectification is set to be implemented, focusing on meeting actual requirements, clarified Kilian.
The Volkswagen AG also abolished the collective labor agreement for temporary work. As per Kilian, the objective is to enable the company to utilize temporary labor in the future "under the industrial sector's collective bargaining terms" instead of the currently incurred "significantly higher costs than competitors."
The VW works council in conjunction with IG Metall expressed their "strong opposition" to the austerity measures last week. IG Metall stated that approximately 25,000 employees participated in a works meeting in Wolfsburg, during which they expressed their disapproval towards the group's board and Volkswagen AG with boos.
In an effort to reduce costs, the Volkswagen Group is considering implementing stricter savings measures, such as potentially reducing the workforce and closing plants.According to Kilian, the current savings rate of Volkswagen AG needs to be significantly improved, especially at German manufacturing sites.
