While the boss of the whole thing gets 72 million kroner a year, Volkswagen wants the rank-and-file employees to have their wages cut by ten percent in order not to close factories in Germany.
Volkswagen is facing major economic challenges, and to meet these, the car manufacturer has announced possible factory closures in Germany.
To avoid this, Volkswagen is demanding that the unions accept a 10 percent pay cut for their members – more than 100,000 VW employees.
The demand for a pay cut comes after a fashion between Volkswagen's chief dealer, Arne Meiswinkel, and the union IG Metall. In fashion, savings were negotiated. According to the union, Volkswagen plans to close 3 factories in Germany.
– We are open to all discussions to reach our economic goals," Arne Meiswinkel told reporters in Wolfsburg.
He emphasizes that the wages at Volkswagen will continue to be attractive even with a 10 percent reduction. With bonuses and allowances, a factory employee can earn over DKK 32,000 per month.
READ ALSO: Audi closes car factory – over 3,600 lose their jobs
IG Metall, which initially demanded wage increases of seven percent, now faces a difficult choice. They must balance wage declines against the risk of factory closures and thus layoffs.
Despite the serious threats, the union sees the first negotiation as a step in the right direction. The next formal hearing is scheduled for November 21.
Volkswagen's financial problems are due, among other things, to a drop in profits of 64 percent in the latest quarterly accounts. The car brand has a debt of a staggering 3,200 billion Danish kroner. Something that the brand's finance director believes the company has two – at most three – years to get rid of.
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