Volkswagen cuts working week for 27,700 workers

Volkswagen cuts working week for 27,700 workers

A dispute between automotive company Volkswagen (VW) and suppliers has forced the firm to cut the working hours of 27,700 members of staff – the Wall Street Journal reports.

The decision was made as the dispute will cause production delays in six German factories, including their Wolfsburg plant; they are currently readying 10,000 workers there to switch to shorter or flexible working between 22 August and 27 August.

Factories in Emden, Zwickau, Kassel, Salzgitter and Braunschweig will also be affected.

The suppliers want compensation for the cancellation of a contract by VW that, they claim, has led to a loss in revenue totaling millions of euros.  

The company said in a statement: "Production at several VW plants has been interrupted as a result of a halt in component deliveries by external suppliers.

"Although Braunschweig District Court has issued injunctions obliging the suppliers to resume deliveries, the suppliers have not as yet met their obligations. VW continues its efforts to reach agreement with the suppliers."

UBS analysts estimate that the closure of Wolfsburg factory for one week would cause a fall in gross profits of approximately £86million. 

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