The Volkswagen group confirmed this Wednesday that it intends to proceed with 10% salary cuts in Germany, to “remain competitive” and “safeguard jobs.”
In a statement, the German manufacturer indicates that “due to the economic crisis in the automobile industry”, ncannot “meet the union’s demand for a 7% wage increase“. “Instead, the company believes that reducing salaries by 10% would give Volkswagen AG the means to make future investments in order to remain competitive and, therefore, safeguard jobs“reads the press release.
Arne Meiswinkel, member of the board of management of the Volkswagen group and head of human resources, points out that “successful operations are a prerequisite for job security” and that “that is the group’s goal.” “So one of the things that What we have to do is reduce labor costs. […] at a competitive level in relation to the benchmark of the industry,” he stated, quoted in the press release.
The company’s financial administrator (Chief Financial Officer, CFO), Arno Antlitz, had already confirmed this Wednesday, in a press conference on the occasion of the presentation of the financial results, that the group was consider “serious” cuts and would make “difficult and painful decisions” in Germany.
Volkswagen announced this Wednesday that obtained a profit of 7,590 million euros until September, 33.1% less compared to the same period last year, due to the drop in sales in China. The company also states that financial results were affected by higher fixed costs and provisions to carry out a restructuring, at a time when it considers it “urgently necessary” to reduce costs “significantly.”
Source: Observadora
