The CEO of Volkswagen (ETR:VOWG_p) Group, Oliver Blume, faced off against labor representatives on Wednesday, advocating for substantial cutbacks that he deems necessary to counter the competitive threat from China.
Meanwhile, the labor boss, Daniela Cavallo, cautioned of potential additional strikes if plant closures remain a topic in the ongoing wage discussions.
This internal conflict comes as Volkswagen prepares for a fourth round of negotiations set for December 9. The tension was palpable during the assembly, which saw the attendance of roughly 20,000 workers and the German Labour Minister Hubertus Heil.
Blume emphasized the dire need for Volkswagen to adapt, citing the aggressive entry of new competitors into the market and the significant price pressure they exert. He pointed to China as a region where Volkswagen must regain its footing, acknowledging that it has been a major source of stable income for the company until now.
Blume mentioned that German labor costs are currently too high for the company to effectively compete.
In response, Cavallo, who heads the Volkswagen labor council, insisted that sacrifices should be shared across the board, including by management and shareholders, not just by the workforce. She has been vocal in her criticism of Blume for his handling of the dispute, urging for more involvement.
Cavallo also expressed a commitment to reaching an agreement before Christmas, which she said would require compromises and concessions from all parties involved.
"That will mean compromises. Concessions too. Things that you don't like and that sometimes hurt you one way or another. But that has to apply to all sides," Cavallo stated. "Otherwise it's not a compromise."
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