Volkswagen Group's crisis in Europe could result in several manufacturing plants shutting down, but VW's works council thinks that can be avoided. The employee-led group recently proposed a sweeping cut in wages across blue-collar and white-collar jobs. Works council leader Daniela Cavallo believes this would be enough to avoid mass layoffs and the potential closure of VW factories in Germany.
Cavallo presented this information during a press conference ahead of renewed negotiations with VW management, reports Automotive News Europe. The cuts would include wage reductions as well as suspended bonuses for pretty much everyone at the company, including executives and board members. Cavallo stated that labor costs are actually just a small portion of the $18 billion VW management is seeking to save.
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