Volkswagen weighs wage cuts, bonus reductions in push to save 4 billion euros – Handelsblatt

Date:

BERLIN (Reuters) – Volkswagen is exploring a series of cost-cutting measures for its core brand, including a 10% wage cut and a two-year wage freeze, as it seeks to save 4 billion euros, Handelsblatt newspaper reported on Sunday, citing company insiders.

The carmaker is under increasing pressure to reduce expenses amid a challenging economic climate. Workers, meanwhile, have criticized management for not presenting a clear future strategy, despite promises of a new plan in the works.

According to Handelsblatt, Volkswagen’s leadership has discussed several potential cost-saving moves. These include capping bonuses for top-tier employees, reducing additional payments for employee anniversaries, and exploring possible closures of some German production sites.

A Volkswagen spokesperson declined to comment to Handelsblatt on the ongoing negotiations with the company’s works council and IG Metall, Germany’s powerful metalworkers’ union.

Since early October, Volkswagen’s management has been meeting weekly with worker representatives from its German plants, analysing where cost cuts can be made and which models will be produced at each location.

Negotiations over wage increases are handled separately, according to a union spokesperson, with the next formal round set for Oct. 30.

(Reporting by Riham Alkousaa; Editing by Frances Kerry)

Share post:

Popular

More like this
Related

23-goal target makes decision regarding Arsenal offer amid interest from Euro giants

Gyokeres could transform ArsenalThe striker has scored 23 goals...

‘One action might decide this game’ – Frank on Everton test

Brentford manager Thomas Frank believes there will be an...

Dharmendra Pradhan, Mansukh Mandaviya Launch ‘Jobs at Your Doorstep’ Report by World Bank

New Delhi: Union Minister for Education, Shri Dharmendra Pradhan,...

WNBA coaching carousel latest: Will the Wings, Mystics or Sun be next to hire?

The two latest WNBA head coach hirings might be...