Volkswagen Works Council Demands CEO Explain Factory Closures to Staff

Tensions are escalating between Volkswagen's workforce and CEO Oliver Blume over the automaker's aggressive cost-cutting measures. The influential works council is demanding Blume provide direct details to employees about potential factory closures in Germany and widespread job cuts across the group. The council criticizes Blume for withholding this crucial information from affected staff outside of management.

“

The VW CEO should finally explain details about possible factory closures in Germany and job cuts in the group to the employees.

After Blume missed a deadline set by works council chair Daniela Cavallo for informing employees, the council insists he must now address workers directly in company meetings after the summer break. This demand comes after Blume presented his drastic savings plan to the supervisory board. Sources indicate this plan involves ceasing car production at the Zwickau and Emden plants by 2031, and the Hannover plant by 2032. Additionally, 50,000 more jobs worldwide are slated for elimination by 2030, on top of the 50,000 already planned reductions.

“

The affected employees outside of management are still being withheld this information.

According to company circles, the proposal was rejected by votes from the IG Metall union and the state of Lower Saxony. Cavallo, who sits on the supervisory board, had accused Blume of "disrespect" for leaving employees in the dark before their vacation. The works council newspaper notes that Blume, who once presented himself as "Olli" and a "child of the region," has lost much of the goodwill he initially enjoyed from the workforce. Lower Saxony's Minister of Economic Affairs, Grant Hendrik Tonne, described the handling of employees as "indecent."

“

With our future plan, we are making the group even more robust and competitive in a globally challenging environment.