Volkswagen managers will take pay cuts worth over €300m by 2030, according to comments published Wednesday from Gunnar Kilian, a VW human resources board member.
Volkswagen’s board would lose a larger proportion of their salary than the rest of management or the workforce, Kilian told local paper Braunschweiger Zeitung.
Kilian declined to give further details.
Volkswagen reached a deal with unions in December that would avoid plant closures in the near-term.
The agreement outlines a cost-cutting plan that would allow €15bn of savings annually – in the medium-term.
This includes €1.5bn of savings in labour costs, with staffing numbers set to be reduced by 35,000 by 2030.
VW plans for capacity at its German factories to fall by 734,000 units.
Union leaders had been in talks with the automaker since September and called the deal a “Christmas miracle”.
Labour representatives also urged management figures in VW to take pay cuts and assume responsibility for the firm’s downturn.
Volkswagen has seen sales at home and abroad plummet, with their products undercut by cheaper Chinese models.
Euronews has contacted VW representatives for comment.
Source: Euro News
