Volkswagen: VW board of directors led by Oliver Blume demands wage cuts at core brand

Background

Against the background of the tense economic situation, the VW board of directors led by Oliver Blume is demanding wage cuts at the core brand Volkswagen. The company is currently facing high costs and declining sales. According to company circles, the board of directors is therefore demanding a reduction in workforce costs.

The core brand Volkswagen is the most important brand of the Volkswagen Group and accounts for around half of the group's sales. However, the brand has been struggling with falling sales in recent months. In addition, the company is facing high costs, especially for the development of electric cars.

Demands of the VW board of directors

According to company circles, the VW board of directors is demanding a wage cut of around five percent for the employees of the core brand Volkswagen. In addition, the board of directors is also demanding a reduction in working hours. The board of directors justifies the demands with the tense economic situation and the high costs of the company.

Reactions from the workforce

The demands of the VW board of directors have met with resistance from the workforce. The works council has rejected the demands and has announced that it will not agree to any wage cuts. The works council is calling for a different approach to cost reduction. The works council is demanding that the company first reduce its high management salaries and consulting costs. The works council is also demanding that the company increase productivity and efficiency.

Outlook

It is unclear whether the VW board of directors and the workforce will be able to reach an agreement on wage cuts. The works council has rejected the demands of the board of directors and has announced that it will not agree to any wage cuts. The works council is calling for a different approach to cost reduction. It is possible that the conflict between the VW board of directors and the workforce will escalate.