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🇦🇹 Austria /Economy & Trade

VW works council rejects layoffs, plant closures

From Die Presse · () German

Translated from German, summarized and contextualized by DistantNews.

At a glance

News From a news agency Context piece
  • Volkswagen's works council firmly rejects any layoffs or plant closures as part of the company's cost-saving measures.
  • The employee representatives are demanding a "forward strategy" from management, not just cuts.
  • Several key VW plants face uncertain futures beyond the early 2030s without secured production plans.

Daniela Cavallo, head of Volkswagen's general and group works council, has unequivocally stated that the company's employee representatives will not accept any dismissals or plant closures. This firm stance comes as the automotive giant grapples with significant cost-saving measures proposed by CEO Oliver Blume.

We definitively rule out dismissals for operational reasons.

— Daniela CavalloHead of Volkswagen's general and group works council, stating the employee representatives' position on job security.

Cavallo emphasized that "}}]{We definitively rule out dismissals for operational reasons." She also asserted that plant closures are "not an option for us." Speaking after a meeting with Lower Saxony's Minister-President Olaf Lies (SPD) at the VW commercial vehicle plant in Hanover, Cavallo stressed that the workforce expects a "forward strategy" from the board, rather than a plan solely focused on staff reductions, lower labor costs, and questioning the viability of existing sites.

Also plant closures are not an option for us.

— Daniela CavalloReinforcing the works council's rejection of any plant closures.

Minister-President Lies echoed the need for collaborative development of future perspectives for VW's locations. He highlighted that the decisions should consider more than just financial returns, emphasizing the importance of employee concerns and the regional significance of the plants. Lies also reaffirmed his strong support for co-determination rights and the "VW Law," which grants the state of Lower Saxony significant influence over the company.

The employee side expects a 'forward strategy'.

— Daniela CavalloDemanding a proactive plan from VW management beyond cost-cutting measures.

Meanwhile, uncertainty looms over several key Volkswagen plants, including Hanover, Emden, Zwickau, and Neckarsulm. According to the company, there are no secured production plans for these facilities beyond the early 2030s, when current vehicle production is scheduled to end. Hanover's works council chairman, Stavros Christidis, suggested a potential revival of the classic Transporter model at the Hanover plant, though this would necessitate ending the current cooperation with Ford on Transporter development and production.

Here it is about a bit more than just the question of a return, a cash flow or a dividend.

— Olaf LiesLower Saxony's Minister-President, emphasizing the broader importance of VW plants beyond financial metrics.
DistantNews Editorial

Originally published by Die Presse in German. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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