Union angry

VW Board of Management to cut its own salary

Volkswagen employees protest against announced plant closures and the threat of tens of thousands of job losses.

(Bild: AFP/Jens Schlueter)

The German car manufacturer Volkswagen is deep in crisis. Employees are to have their salaries cut and anniversary payments canceled. The head of the German trade union IG Metall has now called on the management to "set a good example".

VW CEO Oliver Blume is the best-paid DAX manager, said Christiane Benner, head of the German trade union IG Metall. In view of this, she understands the anger of many employees. According to her, a forward-looking strategy is needed. "And developing this is a management task." For example, it is important to determine how the plants can be utilized to capacity in the future and how structural problems can be resolved.

"Wrong decisions in the past"
 "Even if employees were to receive ten percent pay, this would not be enough to cover the losses caused by management mistakes in the past," Benner is convinced.

In September, Europe's largest car manufacturer terminated the job security agreement, which had ruled out redundancies for more than 30 years. The closure of entire plants is now on the cards. In the current wage negotiations with IG Metall, VW is demanding an across-the-board wage cut of ten percent.

We need people who believe in a company and invest in it. I believe it is legitimate for money to flow back to these investors in good times.

Christiane Benner, IG Metall

The trade unionist rejects the repayment of dividends from major shareholders. "I think that's difficult both legally and morally. We need people who believe in a company and also invest in it. I think it is legitimate for money to flow back to these investors in good times."