Volkswagen faces backlash over proposed pay cuts and freezes
In search of savings, Germany is taking increasingly radical steps. The German newspaper "Handelsblatt," citing internal sources at Volkswagen, reports on the brand's controversial plans regarding potential pay cuts.
According to Handelsblatt, the company is considering reducing employee salaries by 10% and freezing any raises for at least two years. Additional benefits such as performance bonuses and anniversary bonuses are also reportedly on the table. The decisions aim to bring the brand closer to saving at least 4.3 billion Canadian dollars.
Meanwhile, employees criticize management for lacking a clear plan and future strategy. Since the beginning of October, brand executives have met with employee representatives weekly to analyze potential moves. The next round is set to take place on October 30th. It is possible that after this date, we will learn more details.
Volkswagen’s spokesperson refused to comment to Handelsblatt when asked for details. The next meeting is scheduled for 11:00 a.m.
