- The average VW worker would have to be employed for 100,000 years to earn the same.
- Workers will meet with VW management for a new round of meetings on December 9.
- VW has threatened huge job cuts, pay decreases, and proposed closing plants.
Volkswagen is facing a tense standoff between its management and works council as the company grapples with financial woes and production challenges. With new competitors emerging from China, VW’s leadership has put forward controversial measures that involve cutting staff salaries and shuttering plants in Germany, a move that’s proving harder to sell than expected.
A Tense Showdown in Wolfsburg
On Wednesday, about 20,000 workers gathered at VW’s Wolfsburg plant for a heated company-wide meeting. Led by CEO Oliver Blume and attended by German Labor Minister Hubertus Heil, the gathering underscored the gravity of the situation. Blume argued that cutting costs and restructuring are necessary to remain competitive in an increasingly cutthroat market.
Read: 100,000 Volkswagen Workers At 9 Plants Took Part In Massive Strike Action
“As management we’re not operating in a fantasy world. We are making decisions in a rapidly changing environment,” Blume stated. “We therefore urgently need to take measures to secure the future of Volkswagen. Our plans for this are on the table.”
Works Council Rebuke
However, not everyone is on board with the drastic steps. Daniela Cavallo, chairwoman of the VW Works Council, has fiercely rejected the need to slash jobs and close plants and believes that VW’s board of directors, and its major shareholders, must also do their part to guarantee the company’s future. She also took aim at the Porsche and Piëch families, who continue to earn €1 million (~$1.05 million) in dividends each and every week.
“Imagine the following: You play the lottery. Every week. Always the Saturday lottery,” she told Germany’s Faz. “And every Saturday, you win one million euros in the lottery. After one year, you would have 52 million euros. Now, becoming a lottery millionaire every week for an entire lifetime—that’s the amount our major shareholders, Porsche and Piëch, have received in dividends since 2014. Only in the past ten years. From 2014 to today. A skilled worker in German industry—for example, here at VW—would have to work around 100,000 years to achieve that sum.”
The criticism highlights a growing disconnect between the company’s top executives and the workforce, who are feeling the pressure of an increasingly precarious situation.
A Deal Needs Compromise
As tensions escalate, Cavallo says the unions want to get a done deal before Christmas and insists compromises have to be made on both sides, Reuters reports.
“That will mean compromises. Concessions too,” she said. “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.”
On Monday, approximately 100,000 VW workers walked off the job, with more strikes threatened if an agreement isn’t reached. A fourth round of negotiations between workers and VW management has been scheduled for December 9, with both sides hoping to avert a complete breakdown.
