German auto giant's shock plan puts thousands of jobs at risk
Major car manufacturer considers shutting down three factories in Germany while planning significant workforce reductions. Employee council warns about possible strikes as tensions rise over companyʼs future
The auto industry faces a big shake-up as Daniela Cavallo‚ VWs top worker representative shared some hard-to-swallow news: the company wants to close three german factories and cut lots of jobs (tens-of-thousands to be exact)
Management is absolutely serious about all this. This is not sabre-rattling in the collective bargaining round. This is the plan of Germanyʼs largest industrial group to start the sell-off in its home country of Germany
The car-maker plans a 10% pay-cut while dealing with several issues; weak sales in China and Europe‚ plus its behind in the electric-car race. The works council which has half the votes on VWs board‚ agrees theres problems but dont like the solutions
In a direct message to Oliver Blume‚ VWs boss‚ Cavallo warned about possible strikes if they dont change course within 2 days - saying workers might “do what a workforce has to do when it fears for its existence“. The company (which has 680‚000 workers world-wide) recently dropped its no-layoff promise that was supposed to last till 29
A VW rep didnt say much about specific plans but mentioned: “This is the only way to finance further investments in the future from our own resources“. Meanwhile‚ German govt knows about VWs tough spot and talks with both sides
