EVs are central to VW’s woes.
The negotiating committees of Volkswagen AG and IG Metall Lower Saxony and Saxony-Anhalt held negotiations on the 2024 collective bargaining round in Wolfsburg yesterday without reaching an agreement on plant closings or cutting labor costs. However, they did agree to meet again on 9 December 2024. (Read AutoInformed.com on: Large European Job Cuts Coming at Ford, Again, and Pablo Di Si Out at VW Group of America)
“We view it as a positive signal that the employee representatives have shown openness to reducing labor costs and capacity reductions. However, the counter-proposal they submitted must be judged on whether it creates both sustainable financial relief for the company and offers clear prospects for the workforce,” said Arne Meiswinkel, lead negotiator at Volkswagen AG. “For Volkswagen AG, the sustainable achievement of financial targets remains crucial in order to ensure competitiveness in an extremely challenging phase for the German automotive industry,” said Meiswinkel.
The goal of Volkswagen AG is to work together with employee representatives to develop a sustainable solution that ensures economic stability, secures employment prospects, and restores the balance between efficiency and job security. Volkswagen AG’s company collective agreement applies to around 120,000 employees at the plants in Wolfsburg, Braunschweig, Hanover, Salzgitter, Emden and Kassel as well as to Volkswagen Financial Services, Volkswagen Immobilien GmbH and dx.one GmbH.
“As a consequence of the current trend in the automotive industry in Europe, and especially in Germany as a business location, the company sees considerable need for action, over and above rejecting the demands of IG Metall. Volkswagen AG believes a contribution from its employees is necessary. For the collective bargaining process this entails calling for a 10 per cent cut in the pay of employees subject to collective agreements at Volkswagen AG.” Volkswagen said. “Another efficiency measure that the company believes will help to safeguard its long-term success is eliminating anniversary bonuses and the collectively agreed bonus of 170 euros per month.”
In addition to the current proposals, topics such as temporary work and demand-oriented training are to be discussed in greater depth in the fourth round of collective bargaining negotiations.
About Ken Zino
Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn.
He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe.
Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap.
AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks.
Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.
Abgewürgt – Volkswagen German Collective Bargaining
EVs are central to VW’s woes.
The negotiating committees of Volkswagen AG and IG Metall Lower Saxony and Saxony-Anhalt held negotiations on the 2024 collective bargaining round in Wolfsburg yesterday without reaching an agreement on plant closings or cutting labor costs. However, they did agree to meet again on 9 December 2024. (Read AutoInformed.com on: Large European Job Cuts Coming at Ford, Again, and Pablo Di Si Out at VW Group of America)
“We view it as a positive signal that the employee representatives have shown openness to reducing labor costs and capacity reductions. However, the counter-proposal they submitted must be judged on whether it creates both sustainable financial relief for the company and offers clear prospects for the workforce,” said Arne Meiswinkel, lead negotiator at Volkswagen AG. “For Volkswagen AG, the sustainable achievement of financial targets remains crucial in order to ensure competitiveness in an extremely challenging phase for the German automotive industry,” said Meiswinkel.
The goal of Volkswagen AG is to work together with employee representatives to develop a sustainable solution that ensures economic stability, secures employment prospects, and restores the balance between efficiency and job security. Volkswagen AG’s company collective agreement applies to around 120,000 employees at the plants in Wolfsburg, Braunschweig, Hanover, Salzgitter, Emden and Kassel as well as to Volkswagen Financial Services, Volkswagen Immobilien GmbH and dx.one GmbH.
“As a consequence of the current trend in the automotive industry in Europe, and especially in Germany as a business location, the company sees considerable need for action, over and above rejecting the demands of IG Metall. Volkswagen AG believes a contribution from its employees is necessary. For the collective bargaining process this entails calling for a 10 per cent cut in the pay of employees subject to collective agreements at Volkswagen AG.” Volkswagen said. “Another efficiency measure that the company believes will help to safeguard its long-term success is eliminating anniversary bonuses and the collectively agreed bonus of 170 euros per month.”
In addition to the current proposals, topics such as temporary work and demand-oriented training are to be discussed in greater depth in the fourth round of collective bargaining negotiations.
About Ken Zino
Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn. He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe. Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap. AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks. Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.