Clash at Volkswagen Staff Meeting

By Christoph Steitz

FRANKFURT (Reuters) – Volkswagen's CEO and labour boss clashed during a staff meeting on Wednesday. Management is pushing for significant cuts while workers warned of further strikes if plant closures are part of wage negotiations at the troubled German automaker.

Around 20,000 workers gathered at Volkswagen's main plant in Wolfsburg, with German Labour Minister Hubertus Heil also in attendance. The two parties will meet again for negotiations on December 9.

Volkswagen insists plant closures and pay cuts are necessary to compete with Chinese rivals, but workers view these measures as unacceptable, threatening more strikes following earlier walk-outs this week.

CEO Oliver Blume addressed workers, stating they must make tough decisions to adapt to a rapidly changing market. His speech faced interruptions from booing workers when he mentioned his connection to the region, saying, “We are not operating in a fantasy world.”

The European car sector is struggling, with many jobs at risk amid poor market conditions and slow electric vehicle adoption. Blume noted intense price pressures and the need to improve sales rankings in China, Volkswagen's largest market.

Labour council leader Daniela Cavallo critiqued Blume's engagement in the issues and called for sacrifices from all sides in order to reach a compromise before Christmas. Labour minister Heil urged a solution avoiding plant closures and layoffs to foster future investment for Germany’s industrial sector.

Union officials indicated that workers could escalate their efforts if negotiations next week do not yield favorable results, possibly leading to extended strikes.