Germany, Volkswagen: Three Plants Under Threat

The restructuring plan for Volkswagen, a major German manufacturer that represents the paradigmatic example of the German crisis, may be worse than expected.

In recent weeks, there has been talk of two of the group’s factories being in danger of closure, and now that number has risen to three, with even wages in danger. This is reported by Bild, explaining that it has learned from the Production Council that the company plans to close three of its ten plants in Germany and cut the rest. “These plans affect all of VW’s German factories. None of them are safe,” explained Daniela Cavallo, president of the Works Council, in an October 28 address to workers.

This could also be accompanied by a 10% cut in salaries and outsourcing of entire departments that would end up overseas. The cuts will affect all categories of workers, from the least specialized to the most highly skilled and experienced.

A meeting between the company’s top management and the main union, IMG Metall, is scheduled for Wednesday, October 30, and according to Bild, the agreement looks highly unrealistic given that Volkswagen is considering a 10% wage cut while the unions are asking for a 7% increase.

The German government also intervened in the matter through its representative, who emphasized the importance of preserving and guaranteeing all jobs (there are 120,000 VW employees in Germany): “Any poor decisions by past management should not be to the detriment of the employees.”