Sachsen State Premier proposes new operational model for Zwickau VW plant
State Premier Michael Kretschmer has outlined a plan to restructure Volkswagen’s Zwickau facility, proposing performance-based wages and increased automation to address declining competitiveness.
Sachsen State Premier Michael Kretschmer has proposed the creation of an "Autounion" entity to take over the Volkswagen plant in Zwickau, Germany. The initiative seeks to deviate from existing tariff agreements in favor of flexible working hours and performance-based compensation structures intended to reduce high production costs.
The proposal includes transforming the Zwickau site into an innovation hub for humanoid robotics to assist in vehicle assembly. By implementing these measures, the state government aims to secure the factory's future beyond 2031, citing significant overcapacity across Volkswagen’s German production network and a growing competitive disadvantage compared to international rivals.
While the plan aims to guarantee employees' net income for five years through new severance and wage structures, it faces hurdles regarding labor autonomy. The IG Metall trade union has welcomed the dialogue on industrial survival but expressed strong opposition to political interference in collective bargaining. Further negotiations involving local government, the works council, and potential investors are expected.