💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

Audi extends job guarantees for German staff to 2020

Published 12/05/2016, 11:24 AM
© Reuters. Logo of German car manufacturer Audi is seen at a building of a car dealer in Duebendorf
VOWG_p
-

BERLIN (Reuters) - Audi has ruled out forced redundancies in Germany before 2020, its labor boss said on Monday, extending job guarantees by two years even as the Volkswagen-owned (DE:VOWG_p) carmaker grapples with the fallout from the group's emissions scandal.

Volkswagen's (VW) flagship luxury division lowered its forecast for profitability and sales in late October after incurring further costs related to the group's rigging of diesel emissions tests.

But Audi said on Monday its top management would try to negotiate a "comprehensive pact" with labor that could even extend job guarantees for its 61,000 German staff far into the next decade in exchange for steps to boost efficiency.

"The extension of employment guarantees is a major success," works council chief Peter Mosch told a gathering of more than 10,000 workers at Audi's main plant in Ingolstadt. Management and the works council are aiming for a deal sometime next year.

The move comes about two weeks after workers at VW's core brand won assurances there would be no forced dismissals in Germany through the end of 2025.

That deal cleared the way to cutting 23,000 jobs at the VW brand in Germany via buyouts, early retirements and reducing part-time staff.

Audi's German workers have grown concerned about their jobs since management decided in January to use a factory in Brussels to build the brand's first mass-produced electric model and make the site a key plant for electric mobility within the VW group.

Audi has also said it will look at the possibility of cutting about 1,500 temporary jobs at Ingolstadt as it plans to meet 2017 output targets with its core workforce. Ingolstadt employs 44,000 people.

The works council last month struck an agreement with management to preserve costly night shifts, although the deal entailed some changes to production.

© Reuters. Logo of German car manufacturer Audi is seen at a building of a car dealer in Duebendorf

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.