New hope for Volkswagen employees? Heil wants to extend short-time working benefits

Federal Labor Minister Hubertus Heil wants to defuse the crisis at the Volkswagen Group with the planned extension of short-time working benefits to a maximum of two years.

“It’s about maintaining the VW locations, preventing redundancies for operational reasons and shouldering the necessary future investments,” said the SPD politician to the “Augsburger Allgemeine”. “Our task as a state is to accompany this solution with an active economic and industrial policy,” emphasized the minister.

“We will decide next Wednesday in the cabinet by ordinance to extend the short-time working rules,” said Heil, confirming the plans to double the benefit period to 24 months. It’s about building bridges and securing employment.

Because of the company’s difficult situation, Volkswagen is demanding a ten percent pay cut and the cancellation of allowances. Management is also threatening redundancies and plant closures.

The SPD Minister Heil, who comes from Lower Saxony, was confident that he could avert this. “Volkswagen can produce cars that are successful in world markets, I have no doubt about that,” he told the newspaper. “What is important now are social partnership solutions between management and the union.”

IG Metall: Long-term short-time work benefits provide some security

IG Metall chairwoman Christiane Benner called it “good that the federal government is acting now and wants to extend the period of receipt of short-time work benefits from 12 to 24 months.” Numerous companies in different sectors are currently in difficult waters and short-time work is increasing. “Locations and jobs are threatened. The extension gives employees some security. And it helps to retain skilled workers,” said Benner.

IG Metall board member Hans-Jürgen Urban added that “the impending crisis on the labor market cannot be prevented simply by extending the short-time working allowance”. Companies must make their contribution, avoid mass layoffs and develop sustainable products, said the union’s social expert.

/sl/DP/men

AUGSBURG (dpa-AFX)

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