Volkswagen and German Unions Enter Critical Labor Talks Amid Layoff, Plant Closure Concerns

September 26, 2024 – Negotiations between Volkswagen executives and labor unions commenced on Wednesday, addressing salary issues that could potentially determine the extent of layoffs and possible plant closures at Europe’s largest automaker in Germany.

Thorsten Gröger, the chief negotiator for the union, stated unequivocally, “We will not negotiate on plant closures or massive layoffs.” He warned that if Volkswagen persists in its plans for downsizing, “thousands of colleagues will force the company back on track.”

Tensions have been mounting within Volkswagen this year due to a series of layoffs and plant closures. Previously, the company had a conflict with IG Metall, the German metalworkers’ union, which has vowed to oppose any measures leading to job losses or plant shutdowns.

It’s worth noting that earlier this month, Volkswagen announced the termination of a three-decade-old job security agreement. The accord, originally designed to safeguard employees’ positions until 2029, will now conclude by mid-next year.

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