On the Dash:
- Workers call board’s communication “disastrous,” citing an internal survey showing fear and uncertainty
- Four German plants face competitive capacity concerns, though no closure decision has been made yet
- Blume addresses staff Tuesday in Wolfsburg as restructuring could reach 50,000 additional job cuts
Volkswagen employees have pushed back against what they called “disastrous external communication” from the company’s management board, according to an internal works council article seen by Reuters.
The criticism comes as Europe’s largest automaker weighs further cost cuts. A survey conducted last week by Volkswagen’s Group works council found that employees and their families were “unsettled and frightened” by the board’s public messaging.
Workers raised concerns about job security and questioned the future of early-retirement and severance programs, as well as the outlook for plants in Emden, Hanover, Neckarsulm, Osnabrück and Zwickau. Notably, Volkswagen’s supervisory board rejected an earlier version of Blume’s restructuring plan after labor representatives voted against the measure in July, delaying decisions on the same four plants that are now in dispute again.
CEO Oliver Blume addressed the plants in an internal memo on August 21. He said four of them are not expected to reach competitive capacity utilization in the 2030s. Blume added that no decision has been made on specific plant closures. Workers criticized the memo for lacking detail on those plants’ futures. Blume has rejected accusations that the company withheld information from staff.
“We continuously keep our colleagues and employee representatives informed about the status of the plans, through internal channels, but above all through direct personal dialogue,” Blume said in a July interview published on Volkswagen’s website.
Moreover, the automaker is in the middle of what’s considered its largest restructuring effort ever. The plans could include up to 50,000 additional job cuts or the carve-out of some divisions, on top of the roughly 20,000 voluntary departures the company confirmed last year.
Blume is scheduled to address employees at an extraordinary meeting in Wolfsburg on Tuesday. Thomas Schmall, head of components and a management board member, will speak to workers in Braunschweig. The works council called the meetings in July after employee representatives criticized management’s handling of communication around the competitiveness plans.
