Volkswagen to Cut 30% of German Workforce, Avoid Factory Closures

Volkswagen, the largest car manufacturer in Europe, has reached an agreement with its labor union to cut its workforce in Germany by 30%, avoiding the closure of any factories.

By 2030, Volkswagen will cut more than 35,000 jobs out of its total 120,000 workforce in Germany, according to sources like the Financial Times. However, the company assured that none of its German plants will be closed. Labor union leader Daniela Cavallo pledged this during recent discussions.

To achieve workforce reduction, Volkswagen will implement voluntary retirement programs and reduce working hours for elderly employees. Some factories, such as those in Osnabrück and Dresden, might be repurposed into autonomous driving centers or sold off. In addition, the company has planned to increase wages by 5%, but this increment will be redirected into a corporate fund instead of directly benefiting workers.

This development follows months of tension between the company and its labor union. Volkswagen initially announced in October plans to close three factories, lay off tens of thousands of employees, and reduce remaining employee salaries by 10%. This announcement led to strike actions by the union, including two warning strikes in December. As Volkswagen faced a significant profit drop—its third-quarter net profit plunged 63.7% year-on-year—both sides were compelled to find a compromise to stabilize the business and the workforce.

< Summary >

Header
Volkswagen agrees to cut 30% of its German workforce while avoiding factory closures, following months of labor disputes.

Details

• By 2030, Volkswagen will reduce over 35,000 jobs from its 120,000 workforce in Germany.
• German labor union ensured no factory closures.
• Alternative measures will include voluntary retirement programs, converting some factories, and redirecting a 5% wage hike into company funds.
• Facilities like Osnabrück and Dresden may serve as autonomous vehicle research centers or undergo sales.

Key Messages

• Volkswagen faced strikes and financial challenges due to its initial factory closure and salary-reduction plans.
• The collaborative compromise averts factory shutdowns but achieves cost-cutting through workforce reduction.

< 핵심내용 요약 >

헤더
폭스바겐은 독일 내 인력을 30% 감축하는 대신 공장 폐쇄를 피하기로 결정했습니다. 이는 몇 달간의 노사 갈등 끝에 이루어진 합의입니다.

세부사항

• 2030년까지 독일 직원 12만 명 중 3만 5천 개 이상의 일자리가 줄어듭니다.
• 노동조합은 독일 공장의 폐쇄를 막았으며, 강제 해고 대신 자발적 퇴직 프로그램과 고령자 근무 시간 단축이 시행될 예정입니다.
• 오스나브뤼크와 드레스덴 공장은 자율주행 연구소로 바뀌거나 매각될 가능성이 있습니다.
• 직원 임금은 5% 상승하지만, 이는 직접적인 임금 인상 대신 회사 기금으로 사용됩니다.

핵심 내용

• 폭스바겐은 한때 공장 폐쇄 및 대규모 감축 계획을 발표했으나, 노동조합 파업과 논의 끝에 이를 철회하였습니다.

• 회사의 이익이 급감하며 위기 속에서 비용 절감과 노사 간의 합의를 통한 안정화가 이루어졌습니다.

• Crafted by Billy Yang

• [관련글 at nextgeninsight.net/]

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