The concern began to sell about 500 thousand in Europe. has fewer cars each year than during the pandemic, leaving it facing the prospect of closing three plants.
German automaker Volkswagen has reached an agreement with the union to reduce production capacity. The Financial Times reported this on Friday, December 20, citing the VW works council.
In October, the council said it intended to close at least three factories in Germany, cut wages by 10% and not raise them for the next two years. However, the agreement provided that not a single plant would be closed, and savings of 4 billion euros annually would be achieved through other measures.
“No plant will be closed, no one will be laid off and our internal collective agreement will be preserved for the long term,” said VW council chief Daniela Cavallo.
As the publication explained, the parties agreed that in five plants in Germany, the capacity will be reduced by 734,000. production units per year. 35 thousand will also be cut. jobs by 2030.
“But this does not mean laying off employees: the concern will stop hiring new ones, and old ones will retire,” writes the FT.
VW explained plans to close factories by low car sales in Europe.
Earlier, nearly 70,000 Volkswagen workers went on strike over the company’s large-scale layoff plans.
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.