Unions and VW begin negotiations as cuts and factory closures loom | DW News
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- Опубликовано: 26 сен 2024
- Volkswagen and the union representing workers, IG Metall, started negotiations on Wednesday over a new labor agreement. These talks come after Volkswagen dissolved an employment security agreement and said big cuts would be needed, citing declining sales in Europe.
#igmetall
#vw #vwdecline
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if your product is not selling then something needs to change.
They still in the ear of thud sound- door closing.
Low sales is a factor but not the primary problem here.
Bigger issue is difference in cost of production in China vs Germany.
@@ignorasmus I agree but you cannot in this age expect lifetime employment with good wages as your nation makes unrealistic energy policy.
Цену на газ и другие ресурсы? из России стабильно без сюрпризов 70 лет получали ресурсы - и зажрались от сытой жизни.
The question is : who is at fault? Those who design or those who produce?
German worker unions have always prefered to bargain for better job security over higher wages but got neither in the end. Some labor historians argue that unions should alway prioritize bargaining for higher wages because no buissnes can truly promise job security. Seems that they're in the right .
Ukraine blown up North stream.. so the EU lost gas and cheap natural resources (from RUssian FEderatin)., so it is end of economical prosperity. , sorry EU sorry..
@@aleserban9322 How's weather in Russia. ;)
@aleserban9322 lol Russia is economically in ruin but oh wait.. it is thriving, right? Lol
Union think they are the boss. How can you ask for higher pay when they are going to unemploy. The employees should help the company with a reduced wage to keep everyone employed just like what Cathay Pacific did in Hong Kong. A job with less payb is better than no job with -100% raise. Remember, YOU ARE NOT THE BOSS.
@@behemoththekitty Higher wages will increase the price of their vehicle then you would complain how the worker can't buy the car they built.
Until recently I worked in relation to the IT infrastructure of VW. That corporation is an absolute clusterf**k on all levels.
What does this mean? This is not sharing of information it's just swearing bro.
I agree
this must be CARIAD🤣🤣🤣🤣
@@darshilshah7979 that's another story ahahaha
Who cares! At least we have free healthcare in Germany
This feels like a replay of UK car industry collapse
leyland?
At least we have free healthcare in Germany
@@salvinsam the UK has free healthcare too, they in fact have a better system than in Germany because it's entirely state run, it's just underfunded, but that's also the case in Germany, but the UKs system still works far more efficiently.
This is how you dig your own grave.
Yes and it spells EV'bubble
Maybe the Vorstand should stop paying bonuses and 1000x salaries compared to normal workers if they can't do their job right and ran the company into ruin, eh?
@@patrickstar686 you are right. employees should strike to make their companies efficient, so asking a change in leadership is good. is this the case?
@@althyk would the boss hesitate to throw out an employee that clearly cant do their job? is this the case?
@@Jokeniv Nah, EVs are here to stay, once you go EV you will never drive a loud, slow fossil car again.
they stopped selling the Golf in the US and won't sell some models here, lots of lost sales
vw was never that popular here
@@Rudenbehr that's so obviously false.
@@mx338 They're ranked number 10 with 3.6 market share in 2022.
Why don't they just fix the battery range statistics on their EV's?
More important ; FIX THE F-ing SOFTWARE?🤔
I think you’ll find they have already ‘fixed’ their EV battery range statistics 🤣
@@dcasteaux9181 That was my meaning behind the word "fix". They have a history.
😂
They have experience. Just like they “fixed” those diesel cars.
7% IS too much. But yes, poor management and decision-making is to blame. They overextended on EV's and stopped selling their smaller affordable models in many European markets, among many other quality drops, etc... None of this was difficult to predict. They're big enough to ride this out, but they have to close some EV factories and re-introduce the smaller cars. Doesn't help that none of the new models are visually interesting or distinct, they are being beaten in design by Hyundai, for instance.
7% is NOT too much
How is 7% too much if CPI is up 20% over the 5 last years?
@@kreight_ Base fact: The company is losing money and 7% is too much as a single step broad wage increase. Especially considering they likely have union-negotiated annual increases already. They most certainly have had other increases over the last 5 years.
Now I do think that the best move for VW would be to invest in their workforce (but in a more personal manner, not just a broad percentage increase) and promote innovation from within the company, spend more on good analysis and R&D and bring back the smaller affordable models to European markets. Want people want from VW are reliable, good quality, IC and hybrid vehicles at a "value-for-money" price point, something VW has had a reputation for delivering in the smaller car market especially. Selling EV's to China just doesn't make business sense, neither does dropping every vehicle smaller than the Golf (and it doesn't help that the latest iterations of that model are not attractive or distinct, like they have been in the past).
Nah the opposite is true VW should’ve invested in EVs earlier now they’ll lose their market share in China
@@mistermood4164 You're going to have to back that up with some good data, mate. The EV market in EU was overestimated, demand is shrinking (for all EVs, not just VWs, interesting how the mainstream media seems to consistently misrepresent this data, but when you research it yourself you can see this clearly) and European companies can't compete in the Chinese market (local companies will always be able to undercut them). They misread the market completely.
What if VW gets bankrupt? Will it get replaced by another German manufacturer or will VW gets owned by the Chinese ?
The global automobile manufacturers are in surplus.
If VW disappears, there will be no impact.
Not to worry, someone will purchase the company for one dollar wait, not a dollar, but a euro and carry on with a clean slate
They’re still quite profitable, the issue is their outlook, especially with regard to the Chinese market
@@kreight_No they are not ,they are in debt and loosing the market to the Ch1nese..What are stuff are you taking?
@@BruceJ999 that's wrong, their Q1 2024 still has a 4.6bn EUR operating result (this after Q1 negative valuation).
These cost cuts are to bring down employee count as they have quite a bloated staff count (especially as EV requires fewer parts/less staff, though volume might make up for this), overall this is to bring the profit margin up and probably isn't actually really needed unless they want to pursue "infinite growth" rather than just going this is basically market saturation for VW.
Bring back the original VW bug. A Car people can afford
But they lobbied for safety laws that prevent a car like that.
CEO hates all cheap models because it will worsen VW's financial situation.
You both did well to explain a complicated situation, in simple enough terms, while remaining factual. Thank you. You might have mentioned the VW president that was trying to prepare for today, but ousted by shareholders/management just a few years ago.
Also VW quality has gone down the tubes here in U. S.
As well as other German makes. To expensive and ain’t worth the price. Very bad recipe.
VW needs to switch to lower margin but higher volume EV models. Bring out a 15000€ EV with 300km range and you are golden. 😊
They make zero profit as it is, what they should have done was to invest in a 100% ev platform in 2016 after the Dieselgate and when Tesla launched the model 3, they laughed about it with their diesel profits, now who laughs last?
The ev market is stagnant. It's not the future. Diesel and gas will never go away
@Jokeniv muh car go wrooom
@@JokenivNASA had made an external combustion engine in 1980's or so. All sort of fuel can be used in it. Someone will digg up that technology again and it will put an end to diesel and petrol. Maybe we will be using biodiesel or ethanol in future.
ID.1 is on the way. But will it come to Europe?
That is so. Management was doing politics and burnt their fingers. Bad decisions. Bad designing for an instant not quality oriented. Charge management for leading to the demise. The cars don’t reliable like original
7% pay rise is very high. In Sweden Metall union ask for 3% because they dont want to drive inflation up.
Cost of living in Germany has gone up about 10%.
It is shameless to refuse to give workers a raise for fear of inflation.
Workers just need money to pay rent and food.
You work for big business, dont you? 😂😂😂 Ford introduced 33% payraise with full insurance for workers and families. You can pick that apart, cope all you want with that but there retention rate is massively better due to UAW having great lawyers that achieve far more than 3%. That's why there are more STEM workers moving to America than the entire continent of Europe combined. Copium, go for it "but but mass shootings, health care expensive" yet the majority that make it to America stay for life.
That’s genius! Tomorrow I ask my boss to cut my salary to reduce inflation 😂 👍👌🙈🙈🙈
@@Veggieture Shouldn't have closed all nuclear power plants, maybe?
The latest VW cars have had poor sales. Why? Because of poor design (e.g. golf mk8, id3) coming from bad management decisions: annoying touch controls, cheap materials, laggy software, bad reliability record, poor efficiency, high price.
Экономят на всем, кошмар какой
Impressive how fast you sink. Great politicians 👏
The cars are the problem.
Nothing to do with polictians
Bad management and hollow marketing bla bla did the job. It has nothing to do with politicians.
The CEO of Volkswagen salary in 2023 was 14.86 million Euro (16 78 million Dollar), A single employee at VW gets this amount and growing every year. What about the mass factory workers?
U cannot compare a standard employee to a ceo. Its a huge company considering the size it is not a huge wage. Dont comment if ur knowledge is is shallow. Especially knowing the german taxes. Plus thats whats written on the internet. You actually dont know how much he really receives. Pls inform yourself before yapping
The CEO of Stellantis got twice this amount and he is even more incompetent.
@@rikiieiam he has a point though. The ratio of CEO-to-typical-worker compensation was 399-to-1 in average in 2022; that is up from 366-to-1 in 2020 and a big increase from 20-to-1 in 1965 and 59-to-1 in 1989. So the CEO of companies are making a lot more money than before compared to the general population. This should stop. It doesn't mean that they all do it that it makes sense. Worse is that if the companies' value is lowering they still vote themselves big pay raise.
@@lecuyermarcandrei agree he has a point. But important thing is they are closing factory. There is no point in stike if factory is closing
@@rikiieiam CEO is so good, that VW is closing its factories, wtf are you talking about? the dude gets that salary and makes the VW lose money, 0 accountability.
Just fire all the top management. They made the bad decisions, not the workers.
Assume they are all fired tomorrow, and then?
7% ? 😂
VW is about to go bankcrupt, yet workers still ask for 7% increase?
They will be lucky even just to keep their jobs for few more years, they should take a salary cut to stay alive.
The failure was made long ago. By not adjusting too large capacities in time and by sleeping through the switch to EV's and the digital revolution in cars. Now the market - as it usually does - regulates is. Whining and antics about the boom during the times of the combustion engine will not help.
They went too deep with Ev. The market is not growing, so they should go all in with diesel and gas cars, that's is were the future profits are. Just look at Toyota.
@@Jokeniv Absolute nonsense. Our overlaying problem is climate change. Simply put: If it is too hot to live, there will be no economy and nobody who will need cars, no matter which engine. The reasonable solution, at least with cars, is EVs. Today's profits pale in the face of the cost of not reacting, if you need an economic argument to start thinking about it.
the EU lost cheap natural resources (from RUssian FEderatin)., so end of economical prosperity .
@@aleserban9322 No problem. the Russian resources can be replaced within a reasonable time-frame. Russia in turn lost it's narrative to be a peaceful nation. Takes minimum a generation to be mitigated.
@@ppckrtt Russia just defend against NATO encirclement , that is USA proxy war vs. Russia . Russia has already new markets and states of BRICS and Eurasia, Global south growing. But west declining.
Is vw now blackmailing just everyone, for the sake of recouping lost profits?
How are they blackmailing? The Union sits on the Board, so they obviously have influence about the direction of the company. Are you only blaming the owners? Ridiculous.
@@davidlynch9049 i think the ridiculousness is on your side for this misinterpretation of my words.
Yes, Porsche please
Porsche is next!...........
@@samlatooni I can’t really settle for anything less
Bad management some bad engineering decisions. Plus rising coast of cars. If you cant make something that runs for 200+thousand miles with just regular service its not worth it .
reason, because of Germany lost cheap natural resources (GAS, cheap precious metals, raw materials...) on the input of production. So no competitiveness as Russia will sell that to other states like China and also USa
Good hopefully, VW closes for good.
Times have moved on , why can't people understand.
Bring back VW woke diesel technology
Can't meet EU's environmental protection standards
Government bailout. Or workers likely to get bad deal....keep jobs but take a pay cut. All because management was asleep at the wheel, and government was subsidizing them for way too long.
You need 10 people to make 10 cars. How many do you need to make 9 cars?
Bravo China
That is actually crazy how no one talks about the governments massive mistakes here. They are the reason we even talk about this. We should see the reason from where these financial struggles are initiated from? Thats the government and their idiotic bans and sanctions…
More like Porsche family fired Herbert Diesse, canceled trinity platform and don’t comply to market with producing EV. But I guess some people enjoy to breath dieselgate.
Which 'massive mistakes' of the government do you mean exactly? I'm curious.
What are you talking about? You mean governments allowing Volkswagen and other companies to do joint ventures in China this allowing knowledge to leak to China for free??
@@qgxii You’re too un-smart to understand when and if the answer comes. Stop your curiosity.
I believe that the insane push for the ev, was what put the car companies in -germany at least- into this mess. Banning things never really helped industry growth. The icus were the pinacle of the german car industry. Also the incentives to make evs cheaper by certain funds. Once they were gone the true demand was shown. But there are plenty of regulations which i could bring up. But this is the main one in my opinion.
Greens = high price of energy, ban of Russia materials, etc. So thank them for your arbeitloss...
green energy is cheaper than anything else.
Germany does not need cheap energy.
@@jogana6909 Speak for yourself. My father had an small icecream business and the bill went from 1000 Euro to 4000. Now he closed the business.
@@qgxii You are not counting the production of the equipaments, the solar panels, etc. Apart from the fact that it does not generate enough energie at the moment. This will change in the near future, but the reality now is that it is not enough...
🇷🇺🤡🤖
Sanctions are starting to hurt germany bad!!!! bye bye auto industry
How long media will take to call workers Putin agent !?
No one is buying electric vehicles. They are significantly down worldwide, including Germany at 69,000 fewer buys than in previous years.
"No one is buying electric vehicles. " Why is Germany worried then?
@@JoanWayne-i1eand why’s the EU putting tariffs on the Chinese.
Lol no one is buying them? I guess that's why EV sales are up year over year. Or why Tesla Model Y was the best selling vehicle in the world and the EU, why pure EVs are now more than 33% of the Chinese market. Yup.... Not selling
No one? I just bought one. Much better to drive, quieter, faster and cheaper to drive.
People buy Tesla and chineze EVs
No innovation, no new latest technologies with Volkswagen cars then why should I spend my valuable money on these expensive Volkswagen cars instead I will go only for more innovative and cheap Chinese cars. I don’t care of German big auto badge or emblems.
Aha, the kings of copying western companies, innovations? 🤣🤣
@@Jeff.55649 Chinese auto companies are front runners in advanced battery technology, AI integration and data driven development. German auto companies are still living in the 19th century. Only thing they are doing is increasing the cost of their cars due to their old badges or emblems.
to be honest many people prefer proper cars with reasonable cost and range to drive. According to the latest market research, Chinese prefer more tech stuff in their cars, bizarrely features like karaoke. on the other hand Europeans prefer more cost efficient and reliability. VW and other European manufacturers are far away from these. if you look at warranty of Asian manufacturers (10 vs 3 years) any reasonable person would pick the more reliable option.
@@GreenOliveBranch if European cars are more reliable then why don’t they have the guts to provide warranty more than 3yrs, which explains a lot.
So the company is bleeding money and underperforming yet the workers want a pay raise? Laughably unserious.
Look at the top executives salary, and then talk about this.
More power to workers 💪
Looks like you better get another job!
VW need to move out
Strike
it's insane how much power labor has in Germany - that will be the ultimate downfall of their car industry
When you have crazy left politics you get what you deserve
There are so many at fault here so just blaming everything on the company is wrong.
If at all the company agrees to the union they have to increase the price for all their vehicles which will further make it unaffordable and the cycle continues as other automakers will do the same and all workers will finally reach the same point. And it will further punish the company and it will be forced to close factories and fire workers as they have good reason to do so as their sales are going down and because of higher pay demand they are unable to afford to pay the workers so they will be forced to fire them. And we are back to same position again.
One of the biggest problems for workers in switching to EV's is it takes less workers to build them so you can't have it both ways. But most of the problems stim from bad government policies which hurt the economy as example energy, corruption and regulation!
Solution: repair and reconnect Nord Stream pipeline
Have you asked the Americans? :))
@@DungVo-cj1vqNope they havent its was us for sure . Plus anything else destructive in the world .
It will never be repaired. That book is closed forever.
Quiet, 🇷🇺🤖
Start respecting Schengen.
While the German auto industry needs to reinvent itself asap, the government needs to lend all possible support as well as the people need to try and chose local products over cheap Chinese imports as long as the product specification gap is not too big.
If the Germans are angry with VW, then force the Germans to buy more VWs. Counting your fate on foreigner is suicidal, you need to save yourself.
There are many old cars. And very few new cars. VW still have a big share of little sale there is. People don't buy enough cars.
people no more want buy their cars and they are asking for a pay rise ?
Who cares about facts? Left leaning politics are all about feelings
Too much pride, too less work!
The cars are too expensive and the management team make bad decisions and take too much money. Bye bye VW.
Legacy has not taken new auto maker culture changes. Not only did they new makers go EV. They more importantly engineered the whole process of making vehicle from the ground up. Unfortunatley the workers will suffer as their leaders have not analyzed the situation and pivoted correctly. Tesla in Germany does not have a problem. Only legacy. China freely adopted Tesla's culture and is not looking back.
If employees are so upset about decisions management have made where were the outcry’s prior to this? Unions are out of touch in the manufacturing game. People always deserve a good wage but VW are tanking and they want a 7% pay rise??? Many manufacturing jobs will be replaced by robots. Time to re-skill people and look at jobs in other fields. This happened in Australian vehicle manufacturing, unions push wages up, the car companies here lost market share to newer vehicles/manufacturers unions kept pushing wages up, companies become unsustainable, companies close. It’s business, nothing is forever. It’s sad but it’s true. Business is evolving at a rapid rate in this day and age there will be many huge companies in the future that disappear or are shells of their former self.
No one will have a job with that attitude think British Leland in UK
the push for EV's is hurting most carmakers, the average ppl DON'T want an ev
VW sell the ID3 for €15,000 in China, do you think people would be interested in EV’s at that price.
I'm average and just bought one.
Marie Cena
Horrible ICE cars. Horribly expensive ICE cars. Who still wants it? Not me, gone
eletric last year, quite happily.
Sounds rather like UKs car industry from 50 years ago…
Just sold to African union, example country was Uganda, Dr congo, butt suwana ,and other 😂
When you focus on building a "3G Nokia phones" in todays market, then you know you will be out of market in no time.
Any of the workers still using Nokia Phone? No one.
Any one buying old school VW cars? No one.
This might not be a bad thing in the long run, once and while massive companies need to rethink their strategies. I will always choose western made products before anything else.
For what BYD has done, VW surely can too, but it takes determination. 15 years ago BYD was only making batteries for Nokia. But BYD''s Mr. Wang only wears worker's jacket and has lunch at the worker's canteen everyday. There is no executive canteen there.
Stone age minded old German bosses are root cause of Germany's downfall 😂
German should ask Russian gas again to survive their manufacturing sectors.
German workers work shorter hours than in the US or Japan, and are guaranteed long vacations. Their hourly wages are among the highest in the world, and their social security benefits, such as pensions, are also among the highest in the world. To support this, German companies pay a lot of taxes.
After the end of the Cold War, Germany became friendly with Russia, and later received cheap natural gas supplies through Nord Stream, which allowed them to keep energy prices low.
No matter how you imagine, costs other than energy are very high, so it's natural that products made in Germany are very expensive.
With the international environment changing and energy and prices soaring, even a child can understand that it's not easy to continue production in Germany under the same conditions.
It's impossible now to produce in Germany anything other than products sold to very wealthy people, like Mercedes' Maybach and Bentley.
Europeans aren't buying many cars.
Just when you thought you had everybody by the balls and was indestructible comes around a company whose name starts with a T.😂😂
Times have changes and it is irreversible.
It is impossible for vw since a while to produce competitive, cheap cars. And to make things worse, they suck at following the new trend with electric techy cars like the Chinese ones.
The only way forward is to first relocate to cheaper cost markets and by some miracle try to catch-up on their regarding evs. Not guaranteed it will work but it will probably buy a few more years xD
WE SHOULD SEND THESE WORKERS TO UKRAINE AND ISRAEL TO DEFEND DEMOCRACY, THAT IS A NOBLE JOB
The unions are far too powerful here and only care about themselves.
Detroit has its rust belt so will Germany. People with have to be retrained.
This is hard news to hear. Thank you ladies ❤️❤️🌹🌹😉😉
If make policies based on an activist of school going age, this is bound to happen!!
vw prices kept up with inflation but the income of the people did not!
No More cheap russian gas...thanks to USA
ALL ELECTRIC IS NOT A GOOD IDEA TO HAVE …WE HAVE PLENTY OF GAS ⛽…ASK WORKERS NOT TO PROMOTE LABOR PROTESTS - NOT GOOD FOR WORKERS AND MANUFACTURE …THINK DOLLARS PER MONTH -STAY AS IS IN SALARY AND TRY TO SALE BUT NO SALE IN CHARACTER JUST PRESENT VEHICLE …LET IT GROW AGAIN !!! HOW MANY GERMAN MANUFACTURE ARE IN OPERATIONS-OPEN ?
EU will ban the sale of ICE in 2035.
I guess cheap russian gas was not so bad after all.
Cheap gas wouldn't solve their problems. The problems at VW have nothing to do with the energy price.
Say sanctions backfired without saying sanctions backfired 😅😂
Excellent reporting by Marie Sina - very well spoken and effectively communicated!
VW must pay their workers more and guarentee jpbs forever!
The Germans have kinda lost their minds lately.
Without chip energy you have expensive production, its logic.
Price greed and arrogance …. Wake up if Germany wants to a be industrial nation…. Like the past
А нечего было экономике евросоюза становиться больше чем экономика США в 2004 году, вспомните что было с СССР. Вы сами виноваты в том что происходит, нечего было злить США.
The Quality is not there anymore !
Look first at Mercedes
Greetings from Australia 🇦🇺
The ghosts of leyland have returned. :O
Didn't they recently promise not to close factories?
probably why the welfare is better in Europe, and also probably why the economy is not doing great in Europe.
Thank you for the excellent fact based reporting
People should value and buy products from companies that generate jobs in their own country, instead of buying asian junk!
Just repeat to yourself time and again: "Russian Federation accounts for a tiny 1.5% of global economy" 😅😅😅
Poor dealer servicd and quality issues pushes a lot of buyers away
VW intoxicated millions of people. including myself. employees didn't protest back then. i don't care about them now. no VW for me again. ever.
Sadly people can protest all they want, if car does not sell, there will be no company. Mgmt of VW has history of bad decisions and there is no quick fix. Price will be measured in few factories, 10k’s of people being laid off and much more. Lowering prices does not help them as their operational costs are too high. Living on old fame is not viable.
VW will be Chinese in the next 5 years.
still do not understand why they are blaming VW focusing on combustion engines for long. Chinese carmakers are still putting significant R&D money in the development of combustion engines including diesel engines too...
I'm not sure that electric vehicles are the entire problem. From what I hear, at least in Europe, there’s difficulty getting them sold, and it's not just European-made electric vehicles struggling to sell in the European market.
Interest rates need to be lowered....VW 🚢 is listing.
Lets not forget the €30 billion in share buybacks over the last 6 years. There's no need to close the factories.
Way to VW union workers! Go to China and build the best BEV autos there, just dont expect a raise and be happy with $5/hr.../SSS
Lol, people saying EVs are the reason.... Yeah because VW isn't taking it seriously. Plug in hybrids and BEVs are more than half of new cars sold now, with BEVs being about 1/3 of all new car sales. They are switching to EVs rapidly, so if VW and legacy auto in general want to maintain profits then they need to take EVs seriously because China doesn't want their gas cars anymore.