Volkswagen goes head-to-head with workforce over proposed company cuts

A general view of the power station of the Volkswagen plant, ahead of a Volkswagen's works council regular meeting with workers in Germany to discuss matters including progress on its cost-cutting drive, in Wolfsburg, Germany, September 3, 2024. REUTERS/Fabian Bimmer

Works council head Daniela Cavallo, who was elected by workers, will make clear her"fierce resistance" to cuts, she told reporters on Monday. Volkswagen said on Monday it was considering taking the unprecedented move of closing factories in Germany and ending a decades-old job guarantee at six of its plants in a scramble to deepen a 10 billion euro cost-cutting drive. The automaker is targeting a 6.5 per cent profit margin at the brand by 2026, up from 2.3 per cent in the first six months of this year.

But the union, one of Germany's mightiest labour stakeholder groups with seats on Volkswagen's supervisory board, cannot imagine starting negotiations without the company taking its threat to close down plants off the table, he warned in an interview.

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