It just posted its largest loss ever and is up to its eyebrows in scandal-related costs, so what’s a good automaker to do once the hands come out requesting more?
That’s the problem in Wolfsburg, Germany, in which the scandal-rocked Volkswagen and its workers’ labor union find themselves engaged in an uncomfortable dance, according to Automotive News European countries.
The union, IG Metall, says the automaker’s diesel emissions scandal?is no excuse with regard to holding back raises to its 120,Thousand staff members, and Vw says, “What? Sorry, can’t hear you -?we’re driving into a tunnel…call back again later.”
IG Metall is seeking a five percent pay raise for the workers. Volkswagen, meanwhile, just dropped from prosperity to some 4.1 billion euro ($4.6 billion) operating loss with regard to 2015, and just had to set aside $16.2 billion pounds ($18.2 billion) to pay for its U.Utes. settlement?costs.
In addition to that, it has suggested to cut its stock dividend by Ninety-seven percent,
possibly?certainly annoying investors. Oh, as well as there’s still lawsuits and fines to cope with.
Volkswagen’s human resources main Martin Rosik was heard saying that a “measured settlement is more important than ever,” outside of a wage meeting today.
Though the company says its hands are full and wallets empty, the union is not having any of that.
“Workers around the assembly line, in the foundry or in administration haven’t carried out manipulations,” said Hartmut Meine, the actual union’s main spend negotiator. “That is why the workers won’t pay the price. Other people have to take the responsibility.”
If Vw doesn’t?acquiesce to the union demands, IG Metall could have its workers on the picket line on May Thirty-one, the day their wage contract runs out. Prior to that happens, the union wants the employer to table its offer to employees at a May 2 meeting.