Negotiations Over Cost Cuts at Volkswagen

By Victoria Waldersee
HANOVER, Germany (Reuters) – Volkswagen's works council chief stated that negotiations with management over cost cuts must avoid plant closures or redundancies as they enter a crucial round of talks before Christmas.

Daniela Cavallo, the council chief, emphasized the need for a compromise beneficial for both workers and the company, highlighting that “Workers don't want to go into Christmas in fear.”

Unions have warned of unprecedented strike actions beginning in 2025 unless an agreement is reached this year. Cavallo expressed confidence that workers would respond to union calls for escalation if negotiations do not meet their standards.

Union representative Sascha Dudzik reiterated the strong opposition to mass redundancies and plant closures, which Volkswagen cannot completely dismiss in efforts to align capacity with decreasing demand.

Both parties are prepared for lengthy discussions, unless they find major disagreement during the first day, which could lead to negotiations pausing until 2025. More than 100,000 employees across nine plants participated in the largest strikes in the company’s history last week, opposing management's demands for wage cuts and capacity reductions to maintain competitiveness.