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Germany. The conflict at the automotive giant's plants is intensifying. The Chancellor has a proposal

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The second warning strike by Volkswagen employees in Germany ended without an agreement. Factory workers do not want to agree to salary reductions and job cuts. At most, it would be possible to freeze the increases, but only those that would be negotiated in the future. This is not the only German company that cuts costs. The German Chancellor proposes an aid program just before the elections.

In Wolfsburg alone there were 38,000 protesters. – Our response to factory closures and mass layoffs will not be silence. On the contrary, Wolfsburg will make a lot of noise, said Thorsten Groeger, chief negotiator of the IG Metall trade union.

SEE MORE: The “period of peace” has ended. Strikes at the giant

Volkswagen employees organized a four-hour warning strike. Nearly 70,000 trade unionists from nine German plants protested against closing factories and reducing wages, and such steps have been announced for several months by the company's management, which explains the plans as the company's most difficult situation in years. However, this does not appeal to thousands of workers.

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– The one who is not ready to compromise, the one who wants to have everything, will end up with nothing – emphasized Thorsten Groeger.

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What are trade unionists demanding?

Trade unionists proposed to the company that future, not yet negotiated raises should go not to employees, but to a special fund aimed at balancing short-time work.

– After a thorough analysis of the trade unionists' counterproposal, we determined that it was not sufficient for a sustainable solution. That's why we need to find even greater potential, said Arne Meiswinkel, member of the Volkswagen Board of Management.

It didn't work out. Trade unionists left the negotiations without specifics, emphasizing that it was the first time that negotiations were held in an atmosphere of reconciliation. Workers are ready to return to the negotiating table on December 16.

READ ALSO: A revolution in the automotive industry. “This will have far-reaching consequences”

However, both sides are divided by a key issue. Trade unionists announced that further talks will be possible if Volkswagen assures them that it will not close its factories. However, the management board of the largest European car manufacturer is not ready for such a promise.

– It is extremely disappointing that the management persists in its position. Our colleagues still do not know whether they are exposed to job cuts and this applies to everyone in the industry, says Daniela Cavallo, head of the VW Trade Union Council.

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It's not just about the automotive sector. Two weeks ago, Thyssenkrupp announced a 40 percent job reduction by 2030. The largest German steel producer cites the fight against Asian competition.

Olaf Scholz, for whom December 16 will also be a doomsday due to the confidence vote, proposed state aid for German industry. This is a Made in Germany initiative.

Scholz's proposal

– Here's my proposal. Companies that invest in Germany will receive a bonus very similar to that in the United States. 10 percent of the production costs will be reimbursed by the state in the form of a tax refund. This is a simple solution that does not distinguish whether investments are made in digitalization, new energy, production sites or modern machines, said the German Chancellor.

Scholz, whose days as chancellor are numbered, visited the Ford factory, where 2,900 layoffs are expected in the coming years. He assured that Germany is and will remain the European center of industry.

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Main photo source: PAP/EPA/Martin Meissner



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