Volkswagen employees and management are set to face off at the carmaker’s major German sites as anger mounts over cost-cutting plans that could involve up to 50,000 job cuts and threaten the future of four plants.
The first of nine extraordinary meetings organised by the works council is scheduled to take place at Volkswagen’s headquarters in Wolfsburg on Tuesday, with further meetings planned at the company’s other major German sites.
The works council has called for greater clarity from management on the proposed measures as Europe’s largest carmaker struggles with weak sales and shrinking margins in its key Chinese market.
Volkswagen Chief Executive Officer Oliver Blume has warned that measures implemented so far are insufficient to restore the company’s competitiveness, saying the group is oversized and often too slow and complicated.
Blume described the situation at Volkswagen as “more than critical”.
The company’s supervisory board, which includes employee representatives, rejected the latest cost-cutting proposals in July, highlighting the difficulty of reaching an agreement between management and workers.
The meetings are expected to provide an opportunity for both sides to discuss the proposed restructuring and seek a way forward amid growing pressure on Volkswagen’s German operations.
