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German auto giant Volkswagen has said it aims to cut billions from its budget amid a financial crisis at the company. Workers have promised to meet this plan with mass resistance.
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VW workers offer pay cut, threaten strike over crisis
German auto giant Volkswagen has said it aims to cut billions from its budget amid a financial crisis at the company. Workers have promised to meet this plan with mass resistance.
Problems at the German automaker are seen as symbolic of Germany’s wider economic woes
Workers with labor union IG Metall took an extraordinary step on Wednesday, offering to take pay cuts in order to avoid mass lay-offs and plant closures planned by German carmaker Volkswagen.
Ahead of the next round of collective bargaining talks, the union and the VW workers’ council offered to reduce labor costs by €1.5 billion ($1.6 billion). In exchange, employees were seeking guarantees on job security and the future of the company’s nine factories across Germany.
If their demands aren’t met, the union has indicated that a major strike could be imminent.
“Because sustainable solutions are needed, we are now going on the offensive and presenting a solution concept,” said workers’ council chairwoman Daniela Cavallo. “It is a counter-model to the board of management’s plan to cut jobs, which prevents the future instead of creating it.”
Cavallo also suggested that upper management waive their bonuses to alleviate the company’s dire financial straits
