Volkswagen Works Council Blames Major Shareholders For Current Woes
Volkswagen is at a standoff with its workforce as proposed cost-cutting measures ignite tensions across its German plants.
Management wants drastic changes, including job cuts, pay reductions, and even the closure of some facilities. The measures, intended to help VW stay competitive against surging Chinese automakers and a shifting industry, have caused outrage among workers, including a work stoppage earlier this week.
Some 20,000 employees gathered at Volkswagen’s Wolfsburg headquarters for a massive meeting where CEO Oliver Blume addressed the crowd alongside German Labor Minister Hubertus Heil. Blume didn’t sugarcoat the situation, defending the proposed cuts as essential for Volkswagen’s survival.
“We urgently need to take measures to secure the future of Volkswagen. Our plans for this are on the table,” Blume told workers.
Daniela Cavallo, chairwoman of VW’s Works Council has been vocal in her criticism of the plans, especially when it comes to the enormous dividends raked in by the automaker’s largest shareholders, the Porsche and Piëch families.
“A skilled worker here at VW would have to work around 100,000 years to match the dividends earned by our major shareholders since 2014.”
Following this week's protest workers are now threatening strikes if a deal isn’t reached soon, and the clock is ticking toward a critical December 9 negotiation session.
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An experienced automotive storyteller and accomplished photographer known for engaging and insightful content. Michael also brings a wealth of technical knowledge—he was part of the Ford GT program at Multimatic, oversaw a fleet of Audi TCR race cars, ziptied Lamborghini Super Trofeo cars back together, been over the wall during the Rolex 24, and worked in the intense world of IndyCar.
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