Volkswagen might freeze salaries of all employees until 2030
What's the story
Volkswagen, the German automotive giant, is planning to freeze salaries for its 660,000 employees worldwide until 2030. The move comes as part of a broader cost-cutting strategy. According to reports from Sueddeutsche Zeitung and confirmed by the Global Works Council, the plan also includes cuts in bonuses, benefits and jobs.
Backlash
GWC calls management's approach 'absurd'
The proposed salary freeze and other cost-cutting measures have drawn sharp criticism from the Global Works Council.
They have called the management's approach "absurd" and expect strong resistance to what they describe as a "rather unrealistic" implementation plan.
A spokesperson for Germany's trade union IG Metall said, "At Volkswagen, pay development is decided at the negotiating table, not by decree from the executive boardroom."
Restructuring
Ties between Volkswagen and labor representatives have soured recently
The relationship between Volkswagen and its labor representatives has soured in recent months.
This is largely due to CEO Oliver Blume's push for radical restructuring within the company.
The proposed salary freeze could result in an income loss of around 10% for the employees who are affected, owing to inflation.