German unions warn of massive opposition to VW restructuring plans

Key facts

• Germany's largest union, IG Metall, has warned Volkswagen against altering a prior restructuring agreement.
• The automaker's management and unions have been in conflict over a significant overhaul plan since July.
• The proposed restructuring may involve plant closures, division carve-outs, and approximately 50,000 job cuts.
• Volkswagen's supervisory board will convene on Friday to vote on three competing restructuring proposals.
• Continuing current production levels at certain factories without capacity cuts would result in an annual cost disadvantage of around €1.5 billion.

FRANKFURT, Aug 31 (Reuters) - Germany's largest union, IG Metall, has issued a strong warning against any attempts by Volkswagen to dismantle a previously agreed restructuring package. The union's stance comes ahead of a critical supervisory board meeting scheduled for Friday, where a vote on three competing restructuring proposals is expected.

Volkswagen's management and labor representatives have been engaged in a dispute since July over what could be the automaker's most substantial overhaul to date. This potential restructuring includes measures such as plant closures, the separation of certain business divisions, and an additional 50,000 job reductions. This follows a similar restructuring package agreed upon less than two years prior.

Thorsten Groeger, speaking to workers at a staff gathering in Hanover, one of the sites potentially facing closure, stated, "If the board tries to call this agreement into question again, then the factory floors will be up in arms at all our sites." He emphasized, "We will oppose it with all our might."

Arno Antlitz, Volkswagen's finance chief, also addressed the meeting, assuring that the company would strive to safeguard jobs. However, he cautioned that there is no viable follow-up production plan for factories in Hanover, Emden, Neckarsulm, and Zwickau. Antlitz further noted that if excess capacity is not reduced and production continues at current levels, it would lead to a permanent cost disadvantage of approximately €1.5 billion ($1.74 billion) annually.