By Victoria Waldersee

BERLIN (Reuters) – Germany’s biggest union pledged to explore all options, including a four-day workweek, in response to Volkswagen’s threat of closing domestic plants and job guarantee dissolutions.

Volkswagen announced on Monday it was considering the unprecedented step of closing factories in Germany and terminating job guarantees at six of its plants as part of a €10 billion ($11 billion) cost-cutting plan.

When asked about the possibility of a four-day workweek, Christiane Benner, chair of IG Metall nationwide, stated it was “conceivable” and emphasized the need to explore all ideas, while lacking detailed proposals without more company information. She expressed the importance of innovative solutions, recalling VW’s survival through past crises.

Volkswagen refrained from commenting on the four-day week proposal.

Executives mentioned during a staff meeting in Wolfsburg that they have “maybe one, two years” to turn around the brand to survive electrification amidst challenges like declining car demand, increased competition from China, and a complex governance structure affecting decision-making.

VW Group CEO Oliver Blume acknowledged the tough economic environment for Europe’s automotive sector, particularly for the VW brand facing restructuring.

FOUR-DAY WEEK

Blume emphasized the company’s aim for a double-digit percentage return by 2030, laying the groundwork for this objective.

Thorsten Groeger, head of IG Metall in Lower Saxony where VW is located, noted previous agreements with unions during crises should remain valid to support the company through tough times.

In a cost-cutting effort in 1993, a four-day, 28.8-hour workweek was agreed to remain in effect from 1994 to preserve 30,000 jobs across six plants; this was later deemed detrimental to competitiveness.

Stephan Weil, premier of Lower Saxony, emphasized the need for fair burden-sharing during crises, suggesting that historical agreements could be revisited.

Negotiations are expected to commence mid-to-late October, with potential strikes from late November; the union is advocating for an earlier resolution to mitigate employee anxiety.