Despite Oliver Blume's statements ruling out the possibility of redundancies, Volkswagen has informed IG Metall - the German metalworkers' union - that it is cancelling several collective agreements, the most important of which concerns guaranteed employment until 2029 at six German plants. The outlook for Volkswagen is therefore cloudy, and layoffs seem to be coming.
This is an unexpected and unprecedented move on the part of Wolfsburg, which is grappling with an unprecedented crisis. "We need to enable Volkswagen AG to reduce costs in Germany to a competitive level so that we can invest in new technologies and new products with our resources", said Volkswagen's Human Resources Director, Gunnar Kilian.
Reactions
IG Metall's response was swift, with Daniela Cavallo (chairwoman of the German manufacturer's works council, which represents more than 662,000 workers) repeating:"With me, there will be no VW plant closures."
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According to Ms Cavallo, the crisis in which Volkswagen finds itself is not due to staff costs, but to poor management choices, which must lead the company to regain its technological leadership."To achieve this, it is necessary to strengthen technical development instead of constantly pushing back products and projects," said Ms Cavallo, who pointed to software and batteries as the areas in which more investment was needed."In recent years, management has been slow to adopt new products and technologies."
Production line in the Wolfsburg factory
Plant closures are clearly a frightening prospect for many, with IG Metall proposing to extend the working week to four days, as was done in the 1990s, but nothing came of it.
Back to the 1990s
With this cancellation, there is not much time left to reach a new agreement. If it is not concluded by June 2025, the contracts signed before 1994 will come into force, which is a senseless consequence, according to Daniela Cavallo. Forty years ago, this meant higher wages and benefits for staff at Volkswagen's six German plants. The most worrying clause concerns the possibility of redundancies.
"Negotiations are necessary," says IG Metall in its magazine, "otherwise VW will be able to carry out forced redundancies from the summer of 2025, but at the same time it will immediately face huge cost increases for all those who remain."