Volkswagen's Labor Dispute

The CEO of Volkswagen Group, Oliver Blume, confronted labor representatives on Wednesday, advocating for significant cutbacks deemed necessary to combat the competitive pressure from China.

Meanwhile, labor leader Daniela Cavallo warned of potential additional strikes if plant closures remain under discussion in the ongoing wage discussions.

This internal conflict arises as Volkswagen braces for a fourth round of negotiations scheduled for December 9. Tensions ran high during the assembly attended by approximately 20,000 workers and German Labour Minister Hubertus Heil.

Blume highlighted the urgent need for Volkswagen to adapt, citing aggressive competition and substantial price pressure in the market. He acknowledged China as an area where Volkswagen must regain its competitive edge, noting it has been a crucial source of income thus far.

He also indicated that German labor costs are excessively high for effective competition.

In reply, Cavallo insisted that sacrifices should be balanced across all parties, including management and shareholders, not just the workforce. She criticized Blume's handling of the situation and called for greater involvement from management.

Cavallo affirmed her commitment to securing an agreement before Christmas, emphasizing that this would require compromises and concessions from everyone 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. Otherwise it's not a compromise," Cavallo stated.

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