Wolfsburg, September 14 – Workers at Volkswagen Group are threatening strikes in response to the company’s new cost-cutting plans. This comes as the automaker faces increasing financial pressure, with the potential for plant closures and mass layoffs looming, according to a report from DPA.
Resistance to Job Cuts
Daniela Cavallo, chair of Volkswagen’s employee council, expressed firm opposition to these plans. “We will fight against plant closures and mass layoffs with all our strength, including protest actions,” Cavallo told Focus magazine in an interview published on Friday. She added that “everything is now at stake,” and confirmed that Volkswagen is currently in a “state of emergency.”
Cavallo, who is also part of the IG Metall union’s negotiation team, stressed that while the situation for Volkswagen is indeed difficult, cutting costs alone will not secure the company’s future. She emphasized the need for long-term strategic solutions rather than short-term financial savings.
| Event | Details |
|---|---|
| Union Threat | Potential strikes and protests |
| Main Concerns | Plant closures and mass layoffs |
| Leadership Response | Open to negotiations |
Upcoming Negotiations
Union representatives and company leadership have agreed to bring forward the next round of collective bargaining negotiations to September 25, ahead of the original October schedule. Besides the usual discussions on wages, the talks will focus on job security guarantees, which Volkswagen recently canceled.
Volkswagen’s job guarantee system, in place since 1994, has prevented layoffs due to operational reasons. However, if the two sides fail to reach an agreement by mid-2024, Volkswagen may proceed with layoffs.
Volkswagen’s Financial Struggles
At the start of September, Volkswagen announced it was tightening its cost-cutting measures due to the ongoing financial strain. The company no longer rules out layoffs or plant closures, signaling a shift in its long-standing policy of protecting jobs through its job guarantee system.
Cavallo noted that while there is no dispute about the financial difficulties facing the company, she believes the solution lies in “conceptual long-term strategies,” not just cost-saving measures. The employee council and unions are now bracing for tough negotiations, with the possibility of strikes if a compromise cannot be reached.
Key Keywords:
Volkswagen employee strikes, cost-cutting plans, mass layoffs, plant closures, job guarantee, collective bargaining, Daniela Cavallo, IG Metall union, Volkswagen financial struggles
