Plan that concerns 660 thousand employees at Volkswagen: Salaries can be frozen until 2030

A new claim regarding cost reduction plans at German automotive giant Volkswagen has come to the fore.

According to the news of Süddeutsche Zeitung, based on internal company documents, Volkswagen management is considering freezing the salaries of approximately 660 thousand employees worldwide until 2030.

It was stated that the Volkswagen Global Labor Council also confirmed that it had access to internal information regarding the management's plans in this direction.

CLAIM OF 10 PERCENT LOSS IN REAL INCOME

The news stated that if wages are not increased until 2030, there may be a loss of approximately 10 percent in the real incomes of employees due to the effect of inflation.

It was stated that the new global management directives, which are on the agenda to be implemented as of the fourth quarter, cover not only salaries, but also variable wages, special payments, fringe benefits and employment.

REACTION FROM THE UNION

Worker representatives at Volkswagen called management's approach "absurd" and argued that the plan was not feasible.

Germany's largest metal workers union, IG Metall, also emphasized that wage increases will be determined through the collective bargaining process, not by the unilateral decision of the company management.

'SPECULATION' RESPONSE FROM VOLKSWAGEN

The Volkswagen spokesman did not comment in detail, describing the news that salaries would be frozen as "speculation".

The company representative stated that proposals regarding labor costs will be discussed in the new round of negotiations to be held this week.

The ongoing restructuring process under the management of CEO Oliver Blume has become one of the main agenda items of tension between company management and employee representatives in recent months.