Volkswagen has initiated negotiations regarding a fresh production arrangement with the workforce at its all-electric facility located in Zwickau, Germany. This development comes in the wake of the car manufacturer’s decision to terminate a long-standing three-shift agreement. Volkswagen made this announcement on Wednesday.
In its statement, the company articulated its objective as the pursuit of a novel agreement that garners the joint support of both the company and its employees. This prospective arrangement is expected to be responsive to the prevailing market conditions while simultaneously ensuring the economic sustainability of the Zwickau site.
The existing agreement, which has remained in effect since the year 1991, will continue to remain operational until the conclusion of the present year, Volkswagen affirmed.
Initial coverage of these renegotiations was brought to light by the German news agency dpa.
Earlier this month, Volkswagen revealed its intention to curtail previously planned workforce levels and make adjustments to the shift patterns at the Zwickau facility, citing subdued demand for electric vehicles as the driving factor behind these decisions.
In terms of production figures, the Zwickau plant generated a total of 218,000 vehicles in the year 2022, which stands in contrast to its maximum capacity, estimated to be approximately 360,000 units.
