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Volkswagen workers strike at factories across Germany (www.dw.com)

submitted 2 days ago by MicroWave to c/world

10 comments fedilink hide all child comments

Summary

Volkswagen workers across Germany began strikes in response to plans to close three factories, cut pensions, and implement €18 billion in budget reductions.

Led by the IG Metall union, the strikes, involving tens of thousands of employees, are part of what unions promise to be VW’s “toughest wage dispute ever.”

The cuts follow a 64% drop in VW’s Q3 profits, driven by declining industrial orders, shrinking Chinese market share, and EU-China tariff tensions.

Union leaders demand executive concessions, with next week’s talks expected to determine escalation or resolution.

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[–] [email protected] 29 points 2 days ago

I'm so annoyed at coverage of these issues and the economy as a whole. Journalists have to use the biggest numbers they can to make people think it's important.

Ok a 64% reduction in profits is not good. But that also means that the company is still profitable and wants to fire the thousands of people, and in so doing harm the local economy, that gave it massive profits for decades.

A 64% reduction in profits cannot be the company making a loss. Yet the article claims that BMW and Mercedes are "also making similar large losses".

Shareholders have been robbing employees blind for decades, and the second it gets a little bit less profitable we have to fire thousands of people?

And yes, I understand there must be some consideration of future proofing costs against a shrinking consumer base, but such drastic measures are solely aimed at preservation of shareholder dividends and value (see Boeing).