BERLIN (Reuters) – Volkswagen (ETR:) is exploring a sequence 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 underneath rising stress to scale back bills amid a difficult financial local weather. Staff, 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 line with Handelsblatt, Volkswagen’s management has mentioned a number of potential cost-saving strikes. These embrace capping bonuses for top-tier staff, decreasing further funds for worker anniversaries, and exploring potential closures of some German manufacturing websites.
A Volkswagen spokesperson declined to remark to Handelsblatt on the continued 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 value cuts will be made and which fashions can be produced at every location.
Negotiations over wage will increase are dealt with individually, in response to a union spokesperson, with the subsequent formal spherical set for Oct. 30.
