The largest German trade union IG Metall has organized protests at several Volkswagen Group factories, opposing management’s plan to close four plants and increase the number of layoffs to 100,000 employees. The demonstrations took place in Stuttgart and Ingolstadt, the headquarters of Porsche and Audi, as well as other locations.
The protest action is a direct response to the board’s proposals for factory closures, mass redundancies, cuts in social benefits and other cost-saving measures at VW’s German sites. The management of Volkswagen AG, led by CEO Olivier Blume, is facing growing resistance from union leaders who reject the austerity plans aimed at boosting the group’s competitiveness.
During a meeting of VW’s supervisory board on Thursday, IG Metall chairwoman Christine Benner delivered a clear message to the board members: – We are sending a clear signal to the board – not with us such games, workers have already contributed to the savings program – said Benner.
Volkswagen’s management pushes for radical cuts
Days earlier, Olivier Blume published a letter to VW employees in which he warned of urgent changes. – We call for immediate actions to improve competitiveness, especially in German plants where labor costs are very high – wrote Blume. The company is grappling with high production costs in Germany and a declining market share for its vehicles, which puts further pressure on margins.
The implementation of the savings plan faces a major hurdle: the need for approval from the supervisory board. The board includes a large union representation as well as delegates from the state of Lower Saxony, which owns a stake in VW and opposes shutting down factories. This political dimension complicates the restructuring efforts.
Market experts warn against delays
Many automotive market analysts point to a simple correlation: postponing difficult decisions could cost the Volkswagen Group an even greater loss of market share. The company’s competitive position has been eroded by the slow transition to electric vehicles and rising production costs in Germany, while Chinese and American rivals are gaining ground.
The protests by IG Metall are a sign of the deepening conflict between labor representatives and management. Despite the unions’ strong position on the supervisory board, the economic realities of the global automotive market suggest that some restructuring is inevitable. The question remains how far the board will be willing to go and whether a compromise can be found before the situation worsens.
Źródło: wnp.pl, Fot. Sergey Kohl / Shutterstock
