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VW labor leaders say they were not looped in on job cut plans
Works council and IG Metall document points to governance tensions at the German automaker
Key Takeaways:
- Volkswagen labor leaders said they have not been looped in on plans to cut as many as 100,000 positions in Germany.
- Manager Magazin reported VW could double planned job cuts to 100,000 and close four plants in Germany.
- VW’s supervisory board is due to meet July 9 as executives push to improve competitiveness.
Volkswagen AG’s labor leaders have not been looped in on plans to cut as many as 100,000 positions in Germany to boost competitiveness, laying bare governance tensions gripping Europe’s biggest carmaker.
Top labor representative Daniela Cavallo has been part of VW’s renewed efforts to reduce costs, the works council and the IG Metall union said June 29 in an internal document published on VW’s intranet and seen by Bloomberg News.
Manager Magazin reported last week that VW could double planned job cuts to 100,000 and close four plants in Germany, citing meetings among managers. Major strategic decisions at VW need approval from its supervisory board, where labor representatives normally hold half the seats. Currently, they occupy a majority after independent board member Susanne Wiegand did not stand for reelection.
VW is entering another period of upheaval after CEO Oliver Blume and other executives signaled internally that the group remains uncompetitive in key areas. The company’s supervisory board is due to meet on July 9.
The clash shows how difficult it will be for Blume to push through deeper cuts at Volkswagen. Labor leaders wield significant influence; Lower Saxony often sides with workers, and the VW law gives the state a veto over key decisions while making it harder to close major German plants.
