In Germany, negotiations between Volkswagen and unions open in a tense context

Will we end up with a compromise, which the Germans have the secret of, or with a deadlock? It is in a very tense context that collective negotiations between Volkswagen and the powerful IG Metall union begin on Wednesday, September 25. The two parties must agree on the new price scales, and more broadly on the future of German employees and sites since the car manufacturer announced at the beginning of September that its austerity cure could result in factory closures.

Volkswagen and IG Metall will also have to put on the table the job guarantee in force since 1994, but recently denounced by VW, as well as the resumption of apprentices and the remuneration of temporary workers. For the Wolfsburg group, the objective is to reach a global agreement on investments and collective agreements this year, failing which dry layoffs are to be feared.

This is why, even before the start of the discussions, he tried to appease his employees by distributing leaflets in six of his 13 factories across the Rhine.We need to increase productivity and reduce our labor costs“, can be read on the document, which does not contain any other specific information. In a press release, Volkswagen boss Oliver Blume also indicated that he expected “significant concessions” from the unions. “Things need to move to make progress on costs” he said. In response, IG Metall spoke out in favour of returning to the four-day week.

Number of layoffs unknown

«We must not neglect any option to preserve employment” assured Christiane Benner, its president. This measure had already been applied in 1993 during a previous crisis and had made it possible to avoid the elimination of 30,000 jobs. On the other hand, the unionists said they were determined to fight to impose the planned salary increases. “The real reasons for the crisis are not personnel costs, but management mistakes, which now need to be corrected.“, justifies the organization in a press release on its website.

In the meantime, the extent of the bloodletting is the subject of much speculation. According to the German newspaper Manager Magazin, 30,000 employees could be affected by the cuts, a figure immediately denied by VW. For analysts at the American investment bank Jefferies, the closure plans at Volkswagen would rather affect 15,000 employees and two to three factories.

Disagreements at the top of the state

In any case, the German government had to react and on Monday, September 23, the Minister of Economy Robert Habeck invited manufacturers, subcontractors and representatives of the sector to a summit on the automobile industry. Although nothing very concrete came of it, several proposals were made, but they are the subject of disagreement within the government coalition. The Social Democrats are in fact in favor of introducing tax advantages for electric company vehicles. They also want the return of a scrappage premium of 6,000 euros which would be paid to owners of thermal vehicles who switch to electric.

For the Liberals, however, it is an old idea that has never proven itself.The government should introduce a grant for small, economical electric cars of up to 30000 euros and finance it through a tax on new registrations of energy-intensive vehicles“, replies the NGO Greenpeace. Let us recall that a government bonus of 4500 euros for the purchase of an electric vehicle existed until last December. It was eliminated for budgetary reasons.

Source: www.usinenouvelle.com