Works Council - VW efficiency program to be in place by Christmas
According to the Works Council,Volkswagen intends to conclude negotiations on the billion-euro savings program before the end of the year. "Our negotiations with the company are on the home straight," said Works Council Chairwoman Daniela Cavallo at the works meeting in Wolfsburg on Wednesday, according to a statement. "We want to have the key points finalized by the end of the year." She was confident that this would be achieved by Christmas, Cavallo said.
Brand boss Thomas Schäfer announced the first concrete cost-saving measure at the meeting: The planned new construction of the "Campus Sandkamp" development center would be canceled. Instead of investing 800 million euros in the new building, the company now wants to upgrade existing buildings for 450 million euros.
The "Performance Program" announced in the summer is intended to reduce the costs of Europe's largest car manufacturer by ten billion euros by 2026 and increase the return on sales from 3.4 to 6.5 percent. Negotiations have been underway with the works council since October. Schäfer was satisfied with the talks: "We are making good progress." Essential parts have already been decided and are being implemented.
Schäfer said that this would not be possible without job cuts. "We will have to manage with fewer people in many areas at Volkswagen in the future." He had already imposed a hiring freeze as an immediate measure. Cavallo reiterated the "red lines" for the negotiations: There must be no cuts to the pay scale and the agreed job security until 2029, he said. She mentioned an extension of partial retirement as an option for reducing the workforce.
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- Despite the cancellation of the "Campus Sandkamp" development center, Volkswagen still needs to achieve significant cost savings to meet their efficiency program goals by Christmas, as stated by Thomas Schäfer.
- The negotiations between Volkswagen and the Works Council have been ongoing since October, with the aim of reducing the company's costs by ten billion euros by 2026.
- Daniela Cavallo, the Chairwoman of the Works Council, emphasized that there should be no cuts to the pay scale or job security until 2029 during the negotiations with Volkswagen.
- Volkswagen's planned efficiency program and the related negotiations are taking place in Germany, with specific discussions taking place in Lower Saxony where the company's headquarters, Wolfsburg, is located.
- Despite the challenging negotiations and the need for job cuts, Thomas Schäfer expressed satisfaction with the progress made so far, acknowledging the importance of the Works Council's involvement in the process.
Source: www.stern.de
