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. 

Read More

Which professions work the most unpaid overtime?

Overtime may be an unavoidable part of many employees'...

HR Grapevine
HR Grapevine | Executive Grapevine International Ltd
Firm lays off son, so parents buy it & re-hire him

Millennials face a lot of media scrutiny for their...

HR Grapevine
HR Grapevine | Executive Grapevine International Ltd
Has HR changed since 1977?

In 1977 James Callaghan was Prime Minister, Red Rum...

HR Grapevine
HR Grapevine | Executive Grapevine International Ltd
Prince Harry & Virgin Money CEO discuss mental health with staff

Rounding off his tour of the North East, Prince Harry...

HR Grapevine
HR Grapevine | Executive Grapevine International Ltd
Will these jobs be obsolete in 2027?

With the rise of technology and automated jobs, employees...

HR Grapevine
HR Grapevine | Executive Grapevine International Ltd
Storm Doris causes commuter chaos, raising questions on remote working

Cold snaps, storms and floods cost the UK billions...

HR Grapevine
HR Grapevine | Executive Grapevine International Ltd

Guide to HR Technology

Guide to HR Technology 2016

Related Insights

Get ahead of the game by registering now

* By registering you agree that you have read and agree to our Terms and Conditions and that Executive Grapevine International Ltd and its partners may contact you regarding relevant content and products.
HR Grapevine Magazine Latest Issue

Magazine Features