IG Metall Leader Accuses VW CEO of Serious Mistakes

Ahead of a supervisory board meeting on Volkswagen’s cost-cutting measures, IG Metall President Christiane Benner accused CEO Oliver Blume of serious mistakes in his dealings with the workforce. By announcing plant closures, Blume is acting in violation of company agreements and the group’s historical responsibility, Benner told the *Augsburger Allgemeine*. 

“With IG Metall on board, the plants in Emden, Zwickau, Hanover, and Neckarsulm will not be closed,” Benner announced, signaling resistance at the supervisory board meeting, which, according to media reports, is scheduled to take place this Friday. The IG Metall leader is a member of the supervisory board and serves as its vice chair.

Volkswagen is currently debating further cost-cutting measures. From the perspective of the Executive Board led by CEO Oliver Blume, the ongoing job cuts—50,000 positions by 2030—are not enough. The possibility of cutting tens of thousands more jobs is on the table. The VW plants in Emden, Hanover, and Zwickau, as well as the Audi plant in Neckarsulm, are on the chopping block. According to Blume, there is still “no competitive utilization plan for the 2030s” for these facilities.

“A Major Mistake by VW Management”

“It is a major mistake by VW management to include the plants in Emden, Zwickau, Hanover, and Neckarsulm, to plan to cut another 50,000 jobs, and at the same time to announce that the return on sales must rise from the recent 3.8 percent to eight to ten percent by 2030,” Benner emphasized. 

“The company cannot close the plants in Emden and Zwickau any more than it can close those in Neckarsulm and Hanover,” Benner said. “We reached an agreement at the end of 2024 that the Executive Board signed and is obligated to fulfill,” the union leader said. “The employees have also sacrificed money for the sake of their future prospects,” she added.

IG Metall Leader Highlights Social Responsibility

Furthermore, VW also has a social responsibility rooted in its history. “The company’s historical DNA is based on a balanced relationship between economic efficiency and social responsibility,” Benner emphasized. For example, the East Frisia region is economically heavily dependent on the VW plant in Emden. “About 30,000 jobs depend on it,” she said. 

The Zwickau plant must not be closed either. One in four jobs in eastern Germany depends on the auto industry. VW must keep both plants running at full capacity with new models and find new business models for the locations.

“The VW Executive Board’s approach makes me angry: Why is Blume’s management now unsettling employees in Emden and Zwickau, even though we have plenty of time to develop prospects for both locations?” said Benner. 

Benner: Blume Has Caused Confusion

Benner accused Blume of pursuing a misguided communication policy toward employees and the public: “It has been poor so far, because they’ve simply thrown out more layoff figures and plant closures. Yet we already agreed in 2024 that 50,000 jobs would be cut in a socially responsible manner without layoffs for operational reasons.” 

Instead, Blume caused confusion because many believed VW wanted to cut another 100,000 jobs. “VW’s communication policy has put a strain on employees in Emden and Zwickau and is certainly weighing on morale, especially since many employees are now just wondering when they’ll have to leave the company,” the union representative criticized.