Volkswagen Begins Negotiations With Union Representatives

The management of the Volkswagen company has started negotiations with union representatives about wages in the shadow of the announcement of layoffs and closing of factories in Germany.

The influential IG Metal union has vowed to fight any job cuts and negotiate new contracts for Volkswagen’s 130,000 workers in Germany, Reuters reports.

The negotiations are being held in Herrenhausen Castle in Hanover.

Volkswagen says it is at a disadvantage compared to the competition from other European countries and China due to high energy and labour costs in Germany and claims that spending cuts are inevitable.

“We have to work on the restructuring of our company. The situation is serious,” said Volkswagen brand chief Arne Majswinkel.

The German business portal Manager reported last week that Volkswagen wants to eliminate up to 30,000 jobs in Germany and significantly reduce investments.

As stated, the supporters of radical measures in Volkswagen’s management expect the number of workers to drop from the current 130,000 by almost a quarter.

“The economic environment has deteriorated again, new suppliers are coming to Europe. In addition, Germany is particularly lagging in terms of competitiveness. We as a company now have to act consistently in this environment,” said Volkswagen CEO Oliver Blume recently.

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