The news comes after Volkswagen reached a historic agreement with unions in December.
Volkswagen managers will suffer pay cuts worth more than €300 million between now and 2030, according to comments published Wednesday by Gunnar Kilian, a member of VW’s human resources board. Volkswagen’s board of directors would lose a greater proportion of his salary than the rest of the management or staff, Kilian told the local newspaper ‘Braunschweiger Zeitung’. Kilian declined to give further details.
Volkswagen reached an agreement with unions in December to avoid plant closures in the short term. The agreement outlines a cost reduction plan that would save 15 billion euros annually in the medium term. This includes 1.5 billion euros of savings in labor costswith a workforce that will be reduced by 35,000 people between now and 2030.
VW plans to reduce the capacity of its German factories by 734,000 units. Union leaders had been in talks with the automaker since September and called the deal a “Christmas miracle.” Workers’ representatives They also urged VW management to cut their salaries and take responsibility for the company’s recession. Volkswagen sales have plummetedboth inside and outside the country, due to competition from cheaper Chinese models.
‘Euronews’ has contacted VW representatives.
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