IG Metall and the works council present a new future concept

Weak car company

IG Metall and the works council present a master plan for the VW crisis

IG Metall and the VW works council are today presenting an alternative concept to the planned cuts at Volkswagen. With these proposals they want to secure the future of the car manufacturer.

In the struggle for cuts at VW, IG Metall and the works council are planning a counter-proposal to the tough cuts planned by the group. One day before the third round of collective bargaining in Wolfsburg, they want to present the key points of their own overall concept for the future of the car manufacturer, as the union and the works council announced. Works council head Daniela Cavallo and IG Metall district manager Thorsten Gröger want to present their ideas for the recovery of the ailing company.

Since the savings plans became known at the beginning of September, Cavallo and Gröger had asked the group several times to present a concrete overall concept for the future of all locations. Because, Cavallo said in September: “We see a lot of adjustments that we can make in order to reduce costs without immediately questioning entire locations.” So far, the group has failed to set such a target. Now she would like to present such a concept together with IG Metall.

“There is no question that Volkswagen has major challenges,” said Gröger back in September. And the union wants to be part of “a real, sustainable solution”. After all, no one has more interest in the company being positioned for the future than the employees themselves. The aim is to secure locations, capacity utilization and employment in the long term. IG Metall firmly rejects the wage cuts demanded by VW, as well as any plant closures and layoffs that are being discussed.

For its part, the union proposes to reduce labor costs through various measures. In this way, 1.5 billion euros could be saved. Specifically, it is offered that the next wage increase will be temporarily contributed to a future fund as working time and not paid out for the time being. This enables flexible reductions in working hours without reducing the workforce. The benchmark should be the most recent pilot agreement for the metal and electrical industry, which provides for an increase of a total of 5.1 percent in two stages by 2026.

Cavallo outlined the key points of a “Master Plan 2025 – 2030 – 2035” at a works meeting at the beginning of September. She emphasized the need to improve Volkswagen's product substance, as the group was always successful when it impressed with strong products. However, she has currently criticized frequent reversals of decisions and delays in products and projects. What is particularly missing is an affordable entry-level electric model, which is not due to arrive until 2026 with the ID.2.

In addition, the group must be back at the forefront technologically and then bring the products to customers quickly. “We need significant leaps, especially in the areas of software, on-time startups and customer acceptance,” said Cavallo at the time. “And everything that is ultimately not relevant to our technological leadership and therefore not a deciding factor for our customers' purchasing needs to be reconsidered.”

Cavallo called for less complexity, a reduction in bureaucracy and a reduction in the amount of documentation. In addition, the group must avoid duplication of work by the brands and rely more on synergies in order to save costs. She advocated “a readjustment of the management model in the group with a clear focus on the Volkswagen brand. The Volkswagen brand is and remains the core of the Volkswagen Group.”

With regard to finances, Cavallo demanded at the time: “Especially in challenging times, we need the courage to invest even in the crisis and thus lay the foundation for the innovations of tomorrow.” This applies, for example, to new models in the volume segment. This will improve the capacity utilization of the plants, which will reduce costs. “This is the only way we will be able to emerge from this situation stronger and sustainably successful.” Everything else is blind saving.