Wages in the VW management “fall” by 300 million euros
Volkswagen’s management will reduce its salaries by a total of more than 300 million euros by 2030, said Gunnar Kilian, the car giant’s board member in charge of human resources.
The salary reduction is part of the business restructuring measures of the concern, which has found itself in problems.
Board of Directors VW will receive a bigger pay cut than other employees in proportion to their earnings, Kilian told local newspaper Braunschweiger Zeitung, Reuters reported, without giving further details, Reuters reported.
Due to the current challenging conditions in the European automobile industry, the pressure of Chinese competition in the field of electric cars, and the too slow adaptation to changes in the automobile market, VW found itself in business problems.
In order to restore competitiveness, the management announced a business restructuring and a change to the decades-old business model that offers employees numerous benefits and job stability.
This sparked worker discontent and strikes, and management and representatives of the IG Metall union launched multi-week marathon negotiations that ended on December 20.
The outcome of the negotiations is that the VW factories in Germany will not be closed, but the number of employees in the concern on German soil will decrease by 35,000 by 2030. Volkswagen currently employs around 130,000 people.
This and other cost optimization measures should save Volkswagen 1.5 billion euros per year.
Source: Seebiz
Photo: unsplash
Source: bizlife.rs
