Volkswagen and the IG Metall trade union have failed to move closer to an agreement over the restructuring of the car maker, according to German news reports.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Dpa-AFX news said that, after seven hours of discussions, the two parties remain miles apart. They plan to meet again next Friday (22 September).
On Sunday, ahead of the talks, the works supervisory board’s Bernd Osterloh, who represents Volkswagen employees, attacked management, saying that the main problems at Volkswagen are structures and processes rather than personnel costs, according to dpa-AFX.
Volkswagen management is seeking a return to a 35-hour week, up from the current 28.8-hour week, with no additional pay.
According to latest reports they would like a wage structure similar to that of Auto 5000, the Volkswagen Wolfsburg subsidiary that produces some vehicle models such as the Golf-based Touran multipurpose vehicle (minivan). The unit’s workers receive 2.5 hours training a week, but are paid for only half of this time.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataOsterloh has said several times that it would not be possible to raise hours with no extra pay, but the news agency was left with the impression that a 3% wage increase may be enough, perhaps combined with some kind of performance-related bonus system so that if things do improve at the company, workers are rewarded.
Unions are seeking job guarantees at Volkswagen’s six west German plants in return, but management said earlier this year that it needs to reduce the workforce by 20,000 people to be competitive.
Managers have even raised the threat that the next generation Golf might not be produced in Wolfsburg at all.
VW has already shifted some production from Germany in recent years. All Beetles are made solely in Mexico and production of the Jetta – effectively the sedan version of the current ‘Mark V’ Golf – was consolidated in Mexico when the model – VW’s top seller in North America – was redesigned for the US 2005 model year. The previous model had been built in both Germany and Mexico.
The current Jetta is also assembled in South Africa, as was its predecessor, and the VW factory there has also previously been the source of some Golf hatchbacks shipped to the UK, supplementing German supply.
