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posted by janrinok on Friday August 26 2016, @09:54AM   Printer-friendly
from the cost-of-cutting-costs dept.

The World Socialist Web Site reports

The management of Volkswagen in Germany, [Europe's largest automaker, with around 620,000 employees,] has taken a hard-line stance in a dispute with two suppliers and accepted a partial halt in [vehicle] production.

[...] Almost 30,000 workers face the threat of forced time off or reduced hours. [...] The company has applied for reduced working hours at the federal labour agency, which means employees will receive reduced-hours pay, meaning significant wage reductions.

[...] Suppliers ES Automobilguss and Car Trim allege VW has forced them to halt deliveries by ending a development cooperation programme worth half a billion euros without notice or cause. Both firms are demanding VW pay €58 million in compensation. They describe the crisis at VW as self-made. "VW was offloading its own problems onto the supply industry" and was clearly exploiting "its dominant market position against suppliers", they claimed. An employee meeting took place at ES on [August 22].

ES specialises in transmissions, while Car Trim focuses on internal fittings like car seats.

[...] The conflict between VW and Prevent [Group, which overarches the two suppliers and others,] is the outcome of the years-long process of cutting costs by shifting production from the major automakers to suppliers. Much of production has been outsourced to Eastern Europe, where wages are many times lower than those in Germany.

Previous:
Volkswagen Sets Aside 6.5 Billion Euros for Fines and Recalls
Activist-Comedian Interrupts VW Exec's Geneva Presentation to Install "Cheat Box"


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  • (Score: -1, Flamebait) by Anonymous Coward on Friday August 26 2016, @10:29AM

    by Anonymous Coward on Friday August 26 2016, @10:29AM (#393423)

    Gas them and feed them to the dogs! It's the German way.

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