Volkswagen workers condemn ‘disastrous’ communication over job cuts

Employees have criticised Volkswagen’s management as the German carmaker considers further job cuts and the future of several plants. Volkswagen workers have sharply criticised the company’s management amid growing uncertainty over possible job cuts and the future of several German factories. In a survey of employee morale initiated by the works council last week, employees accused the board of “disastrous communication," AFP reported on Monday. The chance to express their criticism and expectations of CEO Oliver Blume and the rest of the board via the company intranet led to ranking the communication as employees' number one grievance, even ahead of concerns about job security or possible factory closures. According to the German Press Agency, employees and their families were left "uncertain and frightened." The consultation was organised by Volkswagen’s works council ahead of a series of meetings between senior executives and employees. CEO Oliver Blume and other board members are beginning a tour of Volkswagen sites for meetings with workers this week, and executives are expected to provide initial answers to the questions and responses to the criticism during these nine extraordinary works meetings, the first of which will take place on Tuesday, 25 August, in Wolfsburg. It will be followed by others at followed by others at sites including Emden, Zwickau, Braunschweig and ending in Hannover on 31 August. Volkswagen is seeking deeper cost cuts as the group struggles with fierce Chinese competition, weaker demand and US tariffs. In a separate intranet post seen by AFP on Sunday, Blume said: "The situation is more than critical," adding that the firm was not making enough money to "ensure we have the means over the long term for new technologies, new products and our locations". Volkswagen reported an 11.6% decline in its first-half operating result to €5.9bn, while its operating margin fell from 4.2% to 3.8%. Volkswagen has already agreed to about 50,000 job cuts across brands, including its namesake as well as others like Audi and Porsche, but Europe's largest carmaker has since said cutting another 50,000 positions could be required. Uncertainty also surrounds four German plants: Volkswagen sites in Emden and Zwickau, the Volkswagen Commercial Vehicles factory in Hannover and Audi’s plant in Neckarsulm. Volkswagen's supervisory board are discussing turnaround plans. Blume said Sunday that Volkswagen and the rest of Germany's car industry are facing "the biggest upheaval in their history" from global headwinds and Chinese competition. Other German carmakers have also warned about the country’s high production costs. Mercedes-Benz chief executive Ola Källenius said last month that costs at the company’s German operations were about 70% higher than at its plants in Hungary. Reports about possible further job cuts at Volkswagen have angered unions, which have accused Volkswagen’s management of failing to communicate openly with employees. Blume confirmed in July that the equivalent of up to 50,000 additional positions could be affected, but said the figure had been leaked to the media without his approval.