In a deepening dispute over cost-cutting measures, Volkswagen (VW) has reaffirmed plans to reduce capacities, including plant closures in Germany, despite resistance from employees and unions. The move has triggered warning strikes from IG Metall, Germany’s largest trade union, set to begin in early December.
VW brand chief Thomas Schäfer emphasized the need for swift action to adapt to market realities. “We have to reduce our capacities and adapt to the new realities,” Schäfer told Welt am Sonntag. He confirmed that the company could not rule out plant closures, stating, “We don’t see avoiding this at the moment.”
Schäfer also indicated that the planned job reductions, which rely on partial retirement and voluntary termination offers, might be insufficient. He warned that more aggressive measures could be required to achieve the necessary restructuring within three to four years.
“We can’t just put Band-Aids on it. That would take bitter revenge later,” he said about the drastic action required to revive one of the flagship companies in Germany’s largest industrial sector.
In a concession to union demands, Schäfer acknowledged that management must share the burden and is doing so. VW’s board has already implemented a 5 percent fixed salary reduction and forgone a €1,000 inflation compensation and a 3.5 percent salary increase for managers. Schäfer signaled a willingness to align future management contributions with collective bargaining outcomes.
IG Metall acknowledged the dire situation facing the car manufacturer last week in crisis talks with the company and expressed its willingness to agree to a delay in any scheduled pay raises for employees; however, it firmly opposed the proposed plant closures and potential job losses, accusing VW of undermining worker interests.
However, the parties failed on Thursday to agree on a way forward, leading the trade union to announce unanimous approval for strikes. The union aims to ramp up pressure on VW but has yet to reveal specific dates or locations for the industrial action.
