Volkswagen and workers clash over layoffs as profits plummet
VW and unions are set for talks over management plans for plant closures and mass layoffs. The talks come as Europe’s biggest car manufacturer reported a profit slump due to high costs and growing.
VW and unions are set for talks over management plans for plant closures and mass layoffs. The talks come as Europe’s biggest car manufacturer reported a profit slump due to high costs and growing competition.
Workers are unhappy about reported plans for the closure of three factories and mass layoffs
Car giant Volkswagen (VW) and labor leaders were set for talks on Wednesday, as company bosses said they would table proposals to tackle high costs and growing competition.
The discussions come on the same day VW announced a 64% plunge in profits and amid concern about widespread job cuts.
VW management wants to close at least three plants in Germany, while also cutting tens of thousands of jobs and cutting wages by at least 10%, union leaders say.
The plans have shaken Europe’s biggest economy as it struggles with stuttering growth.
Unions raised the prospect of strikes unless VW rules out plant closures from its restructuring plan, with labor and management also at odds over pay.
Ahead of the second round of wage dispute and layoff talks, VW negotiator Arne Meiswinkel pointed out the company’s difficult situation, saying Europe’s auto industry faced critical challenges.
“We now need joint and consistent action to find a viable and sustainable solution in the interests of our workforce and our company,” Meiswinkel said.
Volkswagen CEO Oliver Blume cited new competitors in European markets and Germany’s worsening position as a manufacturing location as reasons for the need to “act decisively.”
