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Volkswagen reduces employees, shuts down factories
(MENAFN) Volkswagen is seeking to shrink its workers across Germany and close multiple manufactures in the nation. Its aim is to decrease costs and increase profit on sales, according to the head of the carmaker’s Works Council.
Daniella Cavallo elaborated to the employees in Wolfsburg on Monday that Volkswagen supervision is “absolutely serious” about the decision and that the step is “not saber-rattling in the collective bargaining round,” Reuters stated.
During its 90-year history, the carmaker has never stepped into such a decision before (closing a factory or brach) in its origin country. The latest shut down happened very long time ago, in 1988 in the US.
“It is a firm intention to let the locations’ regions bleed dry and the clear intention to send tens of thousands of Volkswagen employees into mass unemployment,” Cavallo stated.
Her clarifications were after negotiations from the automotive giant for multiple weeks with unions about decisions to renovate its business to stay competitive considering the weaker demand from China and Europe.
She didn’t mention which branch or factory of the ten Volkswagen factories is going to close or the number of employees out of 300,000 employees in the nation will be laid off. However, she emphasized that other facilities might be affected due to the changes, adding that “none of them are safe.”
Additionally, she mentioned that Volkswagen management is deciding on 10 percent pay cut and no promotions or bonuses for the upcoming couple years.
Daniella Cavallo elaborated to the employees in Wolfsburg on Monday that Volkswagen supervision is “absolutely serious” about the decision and that the step is “not saber-rattling in the collective bargaining round,” Reuters stated.
During its 90-year history, the carmaker has never stepped into such a decision before (closing a factory or brach) in its origin country. The latest shut down happened very long time ago, in 1988 in the US.
“It is a firm intention to let the locations’ regions bleed dry and the clear intention to send tens of thousands of Volkswagen employees into mass unemployment,” Cavallo stated.
Her clarifications were after negotiations from the automotive giant for multiple weeks with unions about decisions to renovate its business to stay competitive considering the weaker demand from China and Europe.
She didn’t mention which branch or factory of the ten Volkswagen factories is going to close or the number of employees out of 300,000 employees in the nation will be laid off. However, she emphasized that other facilities might be affected due to the changes, adding that “none of them are safe.”
Additionally, she mentioned that Volkswagen management is deciding on 10 percent pay cut and no promotions or bonuses for the upcoming couple years.
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