Volkswagen is facing a crisis as car sales in Europe shrink, leading to less revenue than expected at a time when new investments are needed.
. It also indicated it might need to end the “guaranteed employment” policy it has adhered to for decades that is designed to ensure workers there will always be a job for them within the Volkswagen family. The news has rocked the company and has been described as an earthquake by some in the German media.
Daniela Cavallo, head of the works council representing the company’s 120,000 employees in Germany, was unmoved. “We are the Volkswagen family, and a family leaves no one behind,” she said, and promised “bitter resistance” to the company’s austerity mandate. “We will not tolerate being liquidated.” Strikes are rare in the company’s history but cannot be ruled out, she added. “A crisis at Volkswagen is a crisis for Germany. Our factory locations are the drivers of whole regions,” Cavallo said.
One of the cornerstones of the relationship between Volkswagen and its workers has been a promise by the company for the past 30 years that every employee would have a guaranteed job with the company during their working career. Layoffs, which are common in the industry, are not the Volkswagen way. But now it appears that promise is in danger as the company struggles to adapt to the current market situation.
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