The union base at VW, Daniela Cavallo, has ahead of the third round of negotiations – which is to begin on Thursday – among other things talked about reduced dividend payments, scrapped bonus programs for employees, managers, and board members as part of the package of measures.
The VW management is aiming to reduce costs by a total of 17 billion euros (almost 200 billion kronor). According to Cavallo, labor costs are only a small part of this.
VW's downsizing plans have been announced following unexpectedly weak demand for electric cars, rising variable costs, and increasingly tough competition from Chinese car manufacturers.
The VW management has flagged the closure of three German factories and the dismissal of tens of thousands of employees, wage cuts, and frozen wages for two years ahead.
Union representatives have warned of the largest strikes in decades if VW closes factories. Already early in December, "warning strikes" are planned if there is no agreement on the cost-cutting measures with union counterparts then.
