The German union IG Metall mentioned Friday it had reached a take care of Volkswagen to keep away from involuntary redundancies and plant closures on the carmaker’s manufacturing websites in Germany till 2030.
Union representatives have been negotiating for weeks with the corporate — Europe’s largest automarker — over cost-cutting measures, together with plans to shut three vegetation, reduce wages and slash jobs.
“We have succeeded find an answer for workers at Volkswagen websites that secures jobs, safeguards merchandise within the vegetation and on the identical time permits vital future investments,” union negotiator Thorsten Gröger mentioned in a press release.
“No web site will probably be closed, nobody will probably be laid off for operational causes and our firm wage settlement will probably be secured for the long run,” mentioned Volkswagen’s works council chief Daniela Cavallo.
Volkswagen mentioned the deal additionally included provisions to chop greater than 35,000 jobs in “socially accountable” methods by 2030.
Marathon talks
Friday’s breakthrough within the northern metropolis of Hannover got here after a marathon negotiations lasting 70 hours — the longest within the carmaker’s historical past.
Gröger mentioned that beneath the settlement, staff could have job safety till 2030 however should forego wage will increase within the coming years and bonuses will probably be reduce.
He mentioned the package deal “consists of painful contributions from workers, however on the identical time creates prospects for the workforce.”
VW’s proposed plant closures, wage cuts and layoffs had already led to 1000’s of staff throughout the nation occurring strike twice previously month.
The union had threatened additional walkouts within the new yr if a deal was not struck earlier than the Christmas holidays.
What did Volkswagen say?
“After lengthy and intensive negotiations, the settlement is a vital sign for the long run viability of the Volkswagen model,” group CEO Oliver Blume mentioned in a press release.
The firm mentioned the settlement with the union would permit financial savings of €15 billion ($15.6 billion) a yr within the medium time period. It may even cut back technical capability at its German websites by 700,000 autos.
“We had three priorities within the negotiations: decreasing extra capability on the German websites, decreasing labour prices and decreasing growth prices to a aggressive degree,” mentioned VW model boss Thomas Schäfer. “We have achieved viable options for all three points.”
The firm cited competitors from China, sluggish demand in Europe and slower-than-expected adoption of electrical automobiles as explanation why it wanted to chop prices.
nm/kb (AFP, Reuters, dpa)
