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The automaker agreed to keep all 10 of its factories in Germany open and to guarantee workers’ jobs until the end of 2030.
By Melissa Eddy
Reporting from Berlin
Volkswagen, Germany’s largest automaker, reached an agreement with its union on Friday, ending a three-month standoff that had rattled the country and brought to light the extent of German industrial decline.
Under the terms of the agreement, reached after more than 70 hours of negotiations in a hotel in the western town of Hannover, the company has committed to keeping its ten factories open in Germany and guaranteeing the employment of its employees until the end of 2030. At that time, the company will bring out a restructuring plan that will come with the elimination of more than 35,000 jobs through retirements and retirements.
In return, the IG Metall union, which represents Volkssalaryn’s top workforce, withdrew its call for a wage increase until 2031 and agreed to bonus and production cuts to thousands of vehicles. in several factories.
“No plant will be closed, no one will be laid off and our corporate wage agreement will be guaranteed for the long term,” said Daniela Cavallo, president of the Volkssalaryn works council, when announcing the agreement.
At stake were not only wages, but also Volkswagen’s plans to cope with the challenge of too many staff and a lack of orders, amid falling demand in Europe and the growing festival of Chinese automakers.
Volkswagen’s problems reflect Germany’s economic malaise. The country’s government expects a contraction of the economy in 2024, for the second consecutive year. Economists expect a significant return to expansion in 2025.
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