Volkswagen Brass Reaches Agreement In Labor Row

Volkswagen Group’s top brass has come to an agreement over labor changes within the company after months of infighting, reports Automotive News.

VW’s labor chief Bernd Osterloh and brand boss Herbert Diess had been at odds over reforms related to cost cutting and employment. The two have now come to an agreement, Osterloh told German newspaper Handelsblatt, and plan on working together to implement a 3.7 billion euro ($4 billion) savings strategy.

“There was a fundamental dispute between works council and the brand chief. That’s history,” Osterloh said. “All participants now have the goal to enter calmer waters.”

VW put in place significant cost cutting measures following its highly damaging diesel emissions scandal. The automaker cut 40 million euros in expenses through cost cutting measures it laid out in November of last year and with this latest agreement will save another 10 million euros.

“Herbert Diess is a good technician who has mastered purchasing, development and production,” added Osterloh. “I have always said we have a lot in common and analyze many topics in a similar manner. Now we have consensus that we want to do this together, management, IG Metall (German labor union) and the works council.”

[source: Automotive News]