Volkswagen CEO In Conflict With Workers As Negotiations Continue Regarding Plant Closures, Layoffs

About 20,000 workers gathered at the main plant of the carmaker in Wolfsburg and the meeting was attended by the German Labour Minister, Hubertus Heil

The management has been pushing for layoffs, however, the German automaker’s workers have warned of more strikes if they continue with plant shutdowns.

Source : Volkswagen dealer

Volkswagen CEO and labour boss stood in conflict during a meeting with the staff on Wednesday. The management has been pushing for layoffs, however, the German automaker’s workers have warned of more strikes if they continue with plant shutdowns.

The workers have been asking for closures to not be a part of wage negotiations with the company, reported Reuters. About 20,000 workers gathered at the main plant of the carmaker in Wolfsburg and the meeting was attended by the German Labour Minister, Hubertus Heil.

The next round of negotiations is scheduled for December 9, 2024. The company reiterated that plant shutdowns and layoffs are necessary in Germany to face the competition from Chinese carmakers.

However, workers have described these measures as red lines and threatened more strikes after the first round of walkouts took place earlier this week, the report noted. 

Speaking with workers in Wolfsburg, Oliver Blume, CEO, Volkswagen Group, said, “As management we're not operating in a fantasy world. We are making decisions in a rapidly changing environment.” 

However, the executive’s speech was interrupted repeatedly by workers, the report said citing sources who attended the meeting.

“The price pressure is immense. We therefore urgently need to take measures to secure the future of Volkswagen. Our plans for this are on the table,” the executive said.

Daniela Cavallo, leader of the carmaker’s labour council, has repeatedly criticised the CEO for not participating enough in the conflict. Cavallo noted that all sides including management and shareholders have had to make sacrifices in the conflict.

She added that the unions were intent to get a deal finalised before Christmas. “That will mean compromises. Concessions too. Things that you don't like and that sometimes hurt you one way or another. But that has to apply to all sides. Otherwise it's not a compromise,” she stated.