Volkswagen Group (XETRA:VOW) is set to cut thousands of jobs, reduce staff pay and close several factories in Germany as part of efforts to bring down costs, its union has signalled.
Workers council head Daniella Cavallo warned on Monday that the company was lining up to close at least three sites in its home country under larger-than-expected cuts.
Volkswagen was also said to be demanding a 10% cut to monthly salaries and pay freezes for the coming two years, Cavallo, who was cited by Reuters, said.
“Management is absolutely serious about all this,” Cavallo warned. “This is not sabre-rattling in the collective bargaining round.”
Volkswagen employs almost 300,000 staff in Germany, with the extent of job cuts and affected sites still unclear.
The company has struggled against lacklustre demand in its home market and competition from Chinese firms in the transition to electric vehicles.
Cavallo added that “all German Volkswagen plants are affected” and that “none of them are safe,” however, ahead of a second round of negotiations on Wednesday.
Shares in the carmaker fell by 1% on Monday.