In view of high labor costs and competitive pressure, Volkswagen is considering increasing weekly working hours and reducing vacation days.
AI-generated summary
VW is struggling with high labor costs in Germany and recently announced austerity measures and the termination of collective agreements. The 35-hour week is the collective bargaining standard in the German auto industry.
VW boss Oliver Blume has discussed higher working hours for the car manufacturer's approximately 130,000 employees in Germany. Labor costs in Germany are about twice as high as in other European countries where VW is active, Blume told the portal âThe Pioneer,â which published the conversation in a podcast. In today's competitive situation, some issues have to be questioned.
According to Blume, there are several starting points for reducing labor costs: In addition to increasing annual working hours - for example through fewer vacation days - it may also involve increasing weekly working hours without compensating wages. âThis needs to be negotiated in the next few weeks and months,â said the manager.
On Wednesday, Volkswagen terminated ten collective agreements - including the important collective agreement. This regulates, among other things, working hours and vacation days. From a company perspective, there are various regulations that need to be adjusted in view of cost pressure. With the termination you open the space for negotiations. The workers sharply criticized the move - and announced resistance.
About a month ago, the VW supervisory board approved a plan that includes extensive cost-cutting measures - including billions in personnel. The board also wants to cut tens of thousands of jobs.
According to dpa information, there has not yet been a specific demand for how much longer VW employees should work per week. For example, higher weekly working hours could help Volkswagen in areas where there is currently overtime and the car manufacturer needs to hire additional people. More regular hours would immediately reduce costs. However, in areas with excess staff, extending working hours would make no sense, company circles said.
The 35-hour week is standard in the German auto industry for companies subject to collective agreements. It is not legally binding. Mercedes-Benz sparked a fundamental discussion about working hours in the summer. In an interview with Handelsblatt, Supervisory Board Chairman Martin BrudermĂŒller suggested a return to the 40-hour week - for the same salary.
According to the Mercedes board, working hours must become cheaper. âThe most direct and, in our opinion, fairest way: We should work more for the same money in all areas,â said the board in a letter to employees in Germany at the end of June.
The new BMW boss Milan NedeljkoviÄ and entrepreneurs from the industry also recently questioned the 35-hour week. IG Metall has already made it clear that it will not give up the regulation without a fight. In addition to protests at Mercedes, the union recently demanded at a car action day with around 175,000 participants: âHands off the 35-hour week!â
AI outlook â possibilities, not facts
Negotiations on new collective agreements in the coming weeks.
Very likely · Within weeks
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