Employees leave the Volkswagen plant in Zwickau after a works meeting. Europe’s largest car manufacturer had announced that, in view of the worsening situation, it would once again tighten its austerity measures at the core VW brand.
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German automotive giant Volkswagen on Tuesday said it was scrapping six labor agreements as the company’s standoff with unions and its works council intensified.
“The company sees itself forced to do so because of the current economic challenges,” Volkswagen said in a statement translated by CNBC.
Volkswagen said it was ending its employment protection agreement, which has been in place for its German workforce since 1994 , as well as a wage agreement for employees with specialist or leadership positions.
It also said it was scrapping agreements for temporary workers and those stipulating that the company must take on apprentices who have completed their training.
Job security for employees remains in place until 30 June 2025, Volkswagen said.
“The current phase contributes to uncertainty. We can counter this if we create future proof perspectives for our company soon. That applies to the company as well as the wage agreement levels,” Volkswagen human resources chief Gunnar Kilian said in the statement.
It comes as European car giants contend with a perfect storm of challenges on the path to full electrification.
Volkswagen last week flagged it was no longer able to rule out closing plants in its home country of Germany — a measure that was previously considered off the table.
The carmaker said at the time that it was acting in order to secure “urgently needed structural adjustments for greater competitiveness in the short term.”
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