BERLIN (Reuters) – Volkswagen (ETR:) is exploring a collection of cost-cutting measures for its core model, together with a ten% wage reduce and a two-year wage freeze, because it seeks to save lots of 4 billion euros, Handelsblatt newspaper reported on Sunday, citing firm insiders.
The carmaker is beneath growing strain to cut back bills amid a difficult financial local weather. Employees, in the meantime, have criticized administration for not presenting a transparent future technique, regardless of guarantees of a brand new plan within the works.
In accordance with Handelsblatt, Volkswagen’s management has mentioned a number of potential cost-saving strikes. These embrace capping bonuses for top-tier workers, decreasing extra funds for worker anniversaries, and exploring attainable closures of some German manufacturing websites.
A Volkswagen spokesperson declined to remark to Handelsblatt on the continuing negotiations with the corporate’s works council and IG Metall, Germany’s highly effective metalworkers’ union.
Since early October, Volkswagen’s administration has been assembly weekly with employee representatives from its German crops, analysing the place price cuts will be made and which fashions shall be produced at every location.
Negotiations over wage will increase are dealt with individually, based on a union spokesperson, with the following formal spherical set for Oct. 30.
