According to the Volkswagen works council, the company is considering widespread pay cuts and layoffs as well as the closure or downsizing of its plants in Germany. Volkswagen management recently presented plans to the works council that include a 10% reduction in pay across the board, as well as wage freezes in 2025 and 2026. All factored in, the works council estimates workers will suffer pay cuts of around 18% over the period. Workers with certain collective agreements would also lose bonuses and additional payments on employment anniversaries. Volkswagen management presented its plans to the works council separate from ongoing discussions about collective agreements, the council said.
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