21.12.2024 / 13:23 World – The German giant
Volkswagen lays off 35,000 workers
Volkswagen, in agreement with the unions, announced that in the future it will lay off more than 35,000 workers and significantly reduce production capacity.
Union leaders have said there will be no plant closings or layoffs at this time, and the company has dropped demands for a 10 percent wage cut.
The agreement on drastic changes in the operations of the German automobile giant prevented mass strikes.
Union leaders welcomed the agreement reached after 70 hours of negotiations, the longest in the company’s 87-year history.
“Volkswagen” has been negotiating with union representatives since September about the measures it considers necessary to remain competitive with cheaper Chinese rivals, in the face of weakening demand in Europe and a slower transition of drivers to electric vehicles.
In the last month, around 100,000 workers have already staged two separate strikes, the largest in Volkswagen’s history, to protest plans to cut costs.
“After long and intensive negotiations, the agreement is an important signal for the future sustainability of the Volkswagen brand,” said Volkswagen Group CEO Oliver Blume.
The company announced that the agreement will enable savings of 15 billion euros per year in the medium term, reports Bankar.me.
(Vijesti.ba)
