Workers Strike, VW Boss Says Union Proposals Do Not Go Far Enough

“We, the management, do not live in a dream world,” Blume said at a meeting at Volkswagen’s Wolfsburg plant, which was attended by some 20,000 workers, according to the IG Metall union. “We make decisions in a rapidly changing environment. We are concerned about the future of our company.”

Volkswagen Works Council Chairwoman Daniela Cavallo said both sides must find compromises to reach an agreement before Christmas. “That means making compromises. And concessions. Things you don’t like and that sometimes hurt.”

About 100,000 Volkswagen employees took part in nationwide strikes on Monday and Tuesday to pressure management, who are threatening a 10 percent pay cut and factory closures. Last week, the workers themselves proposed a package of 1.5 billion euros in additional cuts, including lower dividend payments, reduced bonuses, and the transfer of wage increases to a fund to pay for possible layoffs and reduced working hours. The board rejected that proposal.

German Labor Minister Hubertus Heil also weighed in on Wednesday, saying Volkswagen must find a solution without forced layoffs. Heil’s party, the Social Democratic Party (SPD), has been in the midst of a political battle since Germany’s coalition collapsed last month. New elections are scheduled for late February.

Volkswagen’s corporate structure gives employees a significant voice in key decisions, making it difficult for management to make painful cost cuts. Employee representatives hold half of the seats on the supervisory board, while Volkswagen’s home state of Lower Saxony holds another two seats.

Volkswagen is struggling with declining demand for electric vehicles, rising costs, and increasing competition.

• Also See: Volkswagen Boss Said No Going Back On Plan To Close Factories In Germany