Volkswagen CEO and Labor Representatives Clash at Staff Meeting

Volkswagen Group's CEO Oliver Blume faced worker representatives on Wednesday, defending significant cuts deemed necessary to counter the competitive threat from China. Meanwhile, worker leader Daniela Cavallo warned of potential additional strikes if the topic of factory closures continues to dominate ongoing wage negotiations.

This internal conflict occurs as Volkswagen prepares for the fourth round of negotiations scheduled for December 9. Tension was palpable at the meeting, which included approximately 20,000 workers and German Labor Minister Hubertus Heil. Blume emphasized the urgent need for Volkswagen to adapt, citing the aggressive entry of new competitors into the market and the substantial price pressure they exert. He identified China as a region where Volkswagen needs to regain its footing, acknowledging it as a reliable source of income for the company thus far.

Blume noted that current German labor costs are too high for the company to compete effectively. In response, Cavallo, who is the head of Volkswagen's works council, insisted that sacrifices should be shared not only by the workforce but also by management and shareholders. Cavallo criticized Blume’s approach to handling the dispute, calling for greater involvement.

She also expressed her determination to reach an agreement before Christmas, stating that this would require all parties to compromise and make concessions. "This will mean compromises. Concessions, too. Things you may not like and sometimes feel painful in some way. But this should apply to all parties," said Cavallo. "Otherwise, it won't be a compromise."