Volkswagen‘s talks with unions over the execution of its turnaround strategy broke off on Monday, both sides stated, leaving the deal incomplete, an offer on cost-cutting following the automaker’s diesel emissions scandal.
Labour bosses at Volkswagen stopped cooperation with management on concerns including overtime work, efficiency gains and apprenticeships recently, stating executives were trying to squeeze higher savings than what was agreed in November.
And on Monday Volkswagen’s works council showed that tensions in between its head Bernd Osterloh and VW brand chief Herbert Diess, who have clashed over how to achieve higher savings, had not relieved and called for Volkswagen group CEO Matthias Mueller to play a greater role in dealing with the conflict.
Staff representatives “are clearly dedicated to the contents and core values of the future pact”, a works council representative stated by e-mail. “They are also expecting this from management.”
Diess promised to make proposals for resolving the controversial issues by next Monday when both sides will resume the talks, the works council spokesman stated.
Unions state Diess, who developed a reputation for cutting costs at BMW, wishes to cut temporary workers faster and deeply than agreed.
Volkswagen has stated it can not keep a great deal of short-lived personnel on its books the way it used to, due to shrinking demand for core models like the Golf hatchback and Passat saloon which represented practically a 3rd of the brand’s 5.9 million models developed worldwide in 2015.
“We would welcome if the group’s management would more strongly handle the implementation of the future pact and the compliance with agreements,” the works council representative stated.
A representative for the Volkswagen brand verified that talks had been held off, however refused additional comment.
However Mueller, in a letter to personnel on Monday which was observed by Reuters, suggested he may get more directly involved.
“We as group management and I personally will continue to do everything, so that disputes are solved in a constructive way and Volkswagen will be protected from damage,” he said.
