Chip shortage continues – VW wants to cancel night shifts

Wolfsburg Last November, VW CEO Herbert Diess didn’t even want to take part in the works meeting at the Wolfsburg main plant, arousing the anger of the employees. Participation in the first works meeting of the new year, on the other hand, has become a matter of course for the CEO. Diess thanked for the invitation. “I think it’s good that we meet here so early in the year and exchange ideas,” he said on Wednesday in Wolfsburg.

After the disputes of the past year, the works council and top management are now looking for a new compromise. CEO Diess had angered the workers’ side because he had discussed cutting 30,000 jobs in the fall. He almost lost his job as chief. After Diess relinquished a number of responsibilities, the employee representatives on the Supervisory Board agreed to continue working with him.

At the same time, the current situation in Wolfsburg is also fraught with conflict. This is due to the ongoing shortage of chips at the Volkswagen parent plant.

Almost 400,000 cars were produced there last year, only about half of the possible capacity and fewer than at any time since the 1950s. The company has announced a slight increase for this year, with 570,000 cars to be produced in Wolfsburg.

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The works council prepares the employees for difficult times. “Volkswagen and our Wolfsburg headquarters are in a serious crisis,” said Daniela Cavallo, Chairwoman of the Works Council. The next few months would be tough for the workforce. “They will demand a lot from us and they require all our strength,” she added.

Thousands of VW employees must expect losses

It is specifically about money. Because the full utilization of the Wolfsburg main plant cannot be guaranteed for a long time due to a lack of chips, the board of directors wants to change over the entire shift system in early summer. The most important change: The night shifts are to be canceled on three of the four assembly lines.

Around 13,000 people work in vehicle production in Wolfsburg. About half of them would have to reckon with financial losses if the night shifts are canceled as planned. In individual cases, the night surcharges amount to several hundred euros per month.

Daniela Cavallo wants to negotiate a financial remedy for the employees affected, at least in part. “I demand compensation that cushions these losses,” she said at the works meeting. The employees in Wolfsburg are not responsible for the chip shortage, that is the task of the management. The premium brands Porsche and Audi were primarily served with semiconductors within the VW group – at the expense of Volkswagen employees such as in Wolfsburg.

The chairwoman of the works council is also under pressure herself. She has to prove that she can get something out of the negotiations with the company for the employees. It was only last May that she took over the management of the works council as the successor to Bernd Osterloh. The regular works council elections are also due in Wolfsburg in March. A particularly large number of opposition candidates, including those from IG Metall’s own ranks, are challenging Daniela Cavallo this time.

Works meeting at Volkswagen

The head of the works council, Daniela Cavallo, has to assert herself against several opposing candidates this year.

(Photo: dpa)

In his answer, CEO Diess did not respond to the desire for financial compensation for the no longer night surcharges. However, he also confirmed that the situation remains tense. “Capacity adjustments are necessary, also in the medium term,” said Diess. The CEO also wants to give employees hope. “We see opportunities for further increases in production, particularly in the second half of the year,” says Diess.

The CEO avoided any confrontation in his speech to the workforce. In contrast to autumn last year, there was no talk of further job cuts in Wolfsburg.

Diess preferred to speak of the group’s recent sales successes. “The Volkswagen Group is in top form,” said the CEO. The sales figures for the new electric cars in particular are impressive.

Diess believes that the company and in particular the Wolfsburg headquarters are on the right track. The planned development center and the construction of a completely new assembly factory for the future electric “Trinity” model series will contribute to this.

Volkswagen site in Wolfsburg

The new VW factory could be built near the main plant.

(Photo: dpa)

“Last year we set the course for the location to become the group’s powerhouse again. It’s about investments in the billions,” emphasized Diess. By 2030, Wolfsburg will be future-proof “if we really put our minds to it”.

There was no further argument between the board of directors and the employees at this works meeting. But some think that this truce will only last until the works council elections in March. “I don’t trust the calm,” said a member of the supervisory board. “There are still enough topics with explosive power,” added a top manager.

More: Outdated software is becoming an ever-increasing problem for German carmakers

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