The manufacturer Volkswagen, which is preparing a drastic savings plan, rejected on Friday a union counterproposal aimed at reducing costs without having to close factories in Germany, suggesting a tightening of social dialogue. At Europe’s largest automobile manufacturer, strikes are planned from December 1, as staff representatives had already warned. They should, before Monday, specify future actions.
Although Volkswagen announced in September that it was working on a program to restore its competitiveness, ongoing talks between management and union leaders, under the principle of co-determination, have not led to an agreement on restructuring measures.
The possible savings are estimated at one thousand five hundred million euros
Workers’ representatives presented a counterproposal in November that included the suspension of bonuses, wage increases and reductions in working hours, which they said would allow them to avoid factory closures in Germany and mass layoffs. This offer was not considered viable, the manufacturer announced on Friday. It could certainly “have positive effects in the short term, but the aforementioned measures for the most part do not provide any lasting financial relief for the company in the years to come,” according to a press release from the manufacturer.
The unions had estimated the possible savings at 1.5 billion euros, far from the group’s objectives. The IG Metall union, which is leading the debates, regretted this response which “ignores the constructive proposals of the workers’ representatives.” Volkswagen continues to maintain “maximum positions for severe and lasting price cuts,” said a spokesperson for the metalworkers’ union.
Staff representatives say at least three Volkswagen factories are at risk of closing in Germany and that tens of thousands of jobs could be lost, with remaining employees having to take pay cuts. Both sides are scheduled to resume negotiations on December 9.
Source: BFM TV
