Volkswagen is sticking to its plans for factory closures in Germany, even though the union voted in favor of a strike in early December.
“We have to reduce our capacities and adapt to the new reality,” VW brand CEO Thomas Schäfer told the Welt am Sonntag newspaper in a story published on Saturday.
Included in the cost savings were the location of component and vehicle factories. Asked whether VW could refrain from closing a factory, Schäfer said: “We don’t see this at the moment.”
Schäfer also did not rule out impending layoffs. Reducing workforces through retirements and layoff offers “won’t be enough” and would take too long, he said. Schäfer thinks that the reorganization could take three to four years.
Agrees with the union’s demand to reduce management salaries
If the two parties reach a collective bargaining agreement, “to me that also means that the board and management contribute,” he said. He stated that the board’s fixed salary has been reduced by 5% since January and that management is also forgoing a €1,000 ($1,042) inflation adjustment and a 3.5% salary increase.
On Friday, the collective labor agreement committee of the IG Metall union approved the strikes, after another round of wage talks in Germany ended without success on Thursday. The strikes will begin in early December.
