Volkswagen has threatened to close factories in Germany for the first time in its 87-year history to cut costs and boost profits.
About 70,000 Volkswagen workers are on strike over massive layoff plans at the company. The press service of the IG Metall trade union reported this on Monday, December 2.
Employees protested against management’s plans to cut wages and close several factories in Germany.
The next wage negotiations between company management and workers are scheduled for December 9.
The VW wage agreement applies to six Volkswagen AG plants (Brunschweig, Emden, Hanover, Kassel, Salzgitter and Wolfsburg) as well as VW subsidiaries.
Last week, as the union points out, they proposed measures to save 1.5 billion euros, including waiving bonuses for 2025 and 2026. But VW executives and union leaders cannot agree on how will face falling demand for electric vehicles, higher operating costs and competition from Chinese manufacturers.
In the third quarter, German automaker Volkswagen reduced profit after taxes by 2.8 times to 1.576 billion euros compared to 4.347 billion euros for the same period last year.
Recall that Volkswagen has announced tough cost-cutting measures, including closing at least three factories in Germany, reducing employee pay and outsourcing some departments abroad.
It was previously reported that Volkswagen has abandoned labor agreements that guaranteed the preservation of jobs until 2029.
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Source: korrespondent
I’m Liza Grey, an experienced news writer and author at the Buna Times. I specialize in writing about economic issues, with a focus on uncovering stories that have a positive impact on society. With over seven years of experience in the news industry, I am highly knowledgeable about current events and the ways in which they affect our daily lives.