September 20, 2024 08:22 GMT
GERMANY: Econ Min Visits VW Plant As Gov't Plans Auto Summit
GERMANY
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Economy Minister Robert Habeck says the gov't, "Wants to help VW get through this period without site closures [and] ensure that personnel policy measures remain within the normal collective bargaining framework". Habeck: "A large part of VW's problems must be solved by the company itself." Habeck is speaking on a long-planned visit to the VW plant in Emden, Lower Saxony.
- The comments come as Habeck convenes an auto summit in Berlin on Monday 23 Sep. Originally reported in Bild, the automobile association VDA, the IG Metall Union, car manufacturers and suppliers are set to attend.
- As Zeit reports, "The carmaker has terminated the job security agreement it has had with the unions in Germany for decades, and factory closures and redundancies are under discussion. According to a report by "Manager Magazin," the troubled company could cut up to 30,000 jobs in Germany in the medium term."
- The plant at Emden employs 8,000 workers and VW is the most important industrial employer in the state. The political importance of the automaker's health should not be underestimated.
- Indeed, the Aurich-Emden constituency in which the plant sits had the highest vote share for Chancellor Olaf Scholz's centre-left Social Democrats (SPD) of any of Germany's 299 constituencies in the 2021 federal election, while Lower Saxony - home to VW HQ in Wolfsburg - had the second-highest SPD vote share of any state. As such, any plant closures, or even the looming spectre of job losses could hit support for Scholz's party come the September 2025 federal election.
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