The head of Volkswagen’s works council in Germany said negotiations with the company over cost cuts must find a solution that excludes factory closures or mass layoffs in the country. The last round of negotiations before Christmas begins this Monday.
Daniela Cavallo stated that it is necessary to reach an agreement that is good for both workers and the company, during a speech to union members outside the hotel where the fifth round of negotiations is scheduled to begin. “Workers don’t want to go into Christmas with fear,” she said.
Volkswagen unions are threatening strikes on an unprecedented scale from 2025 if an agreement is not reached this year.
“If we do not reach a result within our conditions, I am sure that the workers will respond to the union’s calls for an escalation,” Cavallo told reporters.
Union representative Sascha Dudzik repeated workers’ staunch opposition to mass layoffs and factory closures in Germany, which the automaker said it could not rule out as it tries to adapt capacity to reduced demand.
Both sides are prepared for talks to last several days unless it becomes clear on Monday that they are too far apart to reach an agreement this year. In this case, negotiations will be interrupted until 2025.
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Last week, more than 100,000 employees at nine Volkswagen factories in Germany crossed their arms in the biggest strike ever at the automaker, protesting management’s position that wages must be cut and capacity reduced for the VW brand to remain. competitive against Asian rivals.
