WolfsburgBei Volkswagen the signs stand again on understanding: the board and the works council have joined forces in the controversial additional job cuts especially in the administrative areas agreed on a compromise. By the year 2023, up to 4,000 jobs are to be canceled at the German locations. In the spring, the management had still spoken of up to 7,000 posts, which should disappear in the administration.
But if you stay in the company, you have a secure job Germany extended for ten years until 2029.
Works council chief Bernd Osterloh is self-confident after the agreement with the management. “We have for the workforce our main concerns job security and partial retirement enforced,” he said Wednesday morning in Wolfsburg. With the extension of job security from 2025 to 2029 equal treatment was achieved at all German locations.
So far, a longer period was only for the plants in Emden and Hanoverwhere the production is almost completely converted to electric vehicles. Because the introduction of electromobility poses additional risks, additional safety should be offered to employees there.
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“With this package will Volkswagen sustainably strengthened, “said Volkswagen HR Board Gunnar Kilian, With additional investments in IT, the Group will become significantly more efficient, but also more attractive for its own employees. “We are creating new, modern digital and agile workplaces and improving our productivity,” added Ralf Brandstätter, Chief Operating Officer (COO) of the Volkswagen brand. The brand will carry most of the newly announced job cuts.
“Here at Volkswagen nobody has to worry about his job,” emphasized Osterloh. Nevertheless, job cuts will continue in the coming years. In the period from 2016 to 2020, around 23,000 jobs will be canceled in Germany as part of the “Future Pact”, especially in production. Osterloh described the agreement with the VW board as a “milestone for the automotive industry.”
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Now comes the administration, where the management sees a greater potential for savings. However, the newly announced reduction of 4,000 jobs is also faced with a job creation: At least 2000 new jobs should provide for a certain balance. They should arise primarily in the IT area.
As is typical for Volkswagen, jobs are canceled in a socially acceptable way. Operational dismissals will not be given. Instead, three more years will be included in partial retirement programs.
The number of up to 7,000 job cuts in the administrative areas mentioned by VW management in March is almost twice as high. In the spring, the executive committee triggered a wave of protests on the part of the works council.
The employees had threatened to block major decisions in the group for a long time. The works councils also received support from, for example, the supervisory boards of the state of Lower Saxony, which according to their information had not been sufficiently informed about the new job placement plans.
The works council accused the management at that time that the figure of 7000 had not been substantiated by any calculations and probably based only on a rough estimate. “The board is so far unable to provide an explanation of these figures. The fact is: we will not accept the fantasies of external management consultancies “, said Works Council chief Osterloh in March.
Osterloh: “Good compromise”
With the new number of 4,000 jobs, which are to be cut especially in the administration, the works council is satisfied. This statement is sound and realistic for the planned period until the year 2023. “Now we have found a good compromise,” Osterloh said Wednesday on the new agreement with the company.
At Volkswagen itself it is admitted that the group has a backlog in the administrative area compared to other large companies. Where computers have long since taken over the administrative work in other companies, Volkswagen calculates invoices manually or enters missing accounts in the financial accounting of employees.
Here, both the board and the works council see pent-up demand in the company. In order to make the administration more efficient in the future, Volkswagen wants to invest on a large scale. The group wants to spend up to the year 2023 up to four billion euros for the digitization.
The aim is to acquire state-of-the-art computer systems that significantly speed up and simplify administration processes and processes. These billions of investments will then ensure that the Volkswagen administration can manage with fewer staff in the future.
Every year 1,400 new trainees
In his view, the works council has asserted itself with another important requirement: Volkswagen will continue to attract 1400 new apprentices every year over the next three years. In the spring, family spokesman Wolfgang Porsche on the side of VW shareholders raised the question if really all 1400 apprentices of Volkswagen would have to be taken over,
At that time, too, the head of the works council had provoked a sharp backlash. “We do not have problems with 1400 trainees by collective agreement,” he said. In operational business, for example in the development of new models, the problems are much greater. The Supervisory Board should rather focus on that.
However, the works council has also approved a compromise line for apprentices. Up to 250 older employees can be counted towards the fixed quota of 1400 if they use certain building up training paths in the IT area.
This step should help to increase the software and hardware competence in the company. In addition, the education budget will increase by 60 million by 2023 to 160 million euros.
More: Volkswagen makes a second attempt for the IPO of the truck holding Traton, A listing is planned in Frankfurt and Stockholm,
“I’m personally setting pace in the transformation of Volkswagen”
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