For a job guarantee

VW Works Council now prepared to waive salary

Protest at Volkswagen(Bild: AFP/Jens Schlueter)

In order to prevent redundancies, the Volkswagen Works Council is now prepared to waive salaries. In return, it and the IG Metall trade union are demanding guarantees for sites and jobs.

A concept would make it possible to reduce labor costs by around 1.5 billion euros, said IG Metall district manager Thorsten Gröger. "1.5 billion euros that we are putting on the negotiating table." In return, the job security agreement that was terminated in September must be reinstated. At the same time, the Management Board and shareholders would have to make a "significant contribution", according to the works council and the trade union, for example by waiving bonuses.

Management still cautious
VW management reacted cautiously to the latest proposals on Wednesday. "First of all, we welcome the fact that co-determination is signaling openness to measures for labor costs and capacity adjustments. Any suggestion that contributes to achieving the targets will help," said HR Director Gunnar Kilian.

For the Group, the focus is on competitiveness. Plant closures could therefore still not be ruled out. Volkswagen has so far demanded an across-the-board wage cut of ten percent. 

Savings target raised
The aim is to reach an agreement by Christmas. For the time being, a peace obligation still applies, which expires at the end of November. Warning strikes are therefore possible from December 1.

The car manufacturer had agreed a ten billion euro savings program with the works council at the end of 2023. According to the union, this target has since been increased to 17 billion euros. Among other things, the weaker demand for cars in Europe and the slump in China are causing the company problems.