December 5, 2024 – Tensions ran high at a recent employee gathering held by German automaker Volkswagen on December 4th, as reported by Reuters. The meeting witnessed a clash between Chief Executive Officer Oliver Blume and labor leaders.
Addressing the gathering, Blume emphasized that the management is not living in a fantasy world and must make tough decisions to navigate the rapidly changing market landscape and fierce competition from new rivals. However, sources revealed that his speech was repeatedly interrupted by jeers from the workers.
The employee assembly, attended by around 20,000 staff members and German Labor Minister Hubertus Heil, set the stage for the fourth round of negotiations scheduled for December 9th.
Volkswagen’s management has been pushing for significant cost reductions, insisting that plant closures and wage cuts in Germany are essential to counter competition from China. However, the labor union has warned of more strike actions if Volkswagen persists in its plan to shut down factories. Earlier this week, workers had already engaged in a first round of strikes.
The European automotive industry is currently facing challenges, including a sluggish market and slower-than-expected adoption of electric vehicles. Blume underscored the intense price pressure and the urgency for Volkswagen to reclaim its top position in sales rankings in the Chinese market. He noted that high labor costs in Germany make it difficult to compete, emphasizing the need for immediate measures to secure the company’s future.
Daniela Cavallo, the chair of Volkswagen’s labor committee, stated that all parties, including management and shareholders, must make sacrifices. She expressed the union’s commitment to reaching an agreement before Christmas.
According to sources, German Labor Minister Heil urged all parties to find a solution that avoids plant closures or forced layoffs.
