Volkswagen is considering a number of cost-cutting measures for its flagship brand, including a 10 percent wage cut and a two-year wage freeze, as it seeks to save 4 billion euros, Handelsblatt newspaper reported, citing company insiders.
The automaker is under increasing pressure to cut costs amid a challenging economic climate. Workers, meanwhile, criticized management for not presenting a clear future strategy, despite promises of a new plan in the works.
According to Handelsblatt, Volkswagen management has discussed several potential cost-saving moves. These include limiting bonuses, reducing additional payments for employee anniversaries and exploring the possibility of closing some German manufacturing plants.
A Volkswagen spokesman declined to comment to Handelsblatt on ongoing negotiations with the company’s works council and IG Metall, Germany’s powerful metalworkers’ union.
Since early October, Volkswagen management has been meeting weekly with worker representatives from its German plants, analyzing where costs can be cut and which models will be produced at each location.
Negotiations on salary increases are being conducted separately, according to a union representative, with the next formal round scheduled for October 30.
Source: Seebiz.eu / Handelsblatt
Photo: Arhiva Autoblog.rs / Volkswagen
Source: autoblog.rs
