Volkswagen considers cutting temporary worker numbers: works council

Sat Oct 17, 2015 11:47am EDT
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BERLIN (Reuters) - Volkswagen (VOWG_p.DE: Quote) is considering a reduction in temporary workers as part of efforts to offset the cost of the emissions scandal, the car maker's works council said on Saturday.

A spokesman for the council, a grouping of labor representatives within the company, said it would support efforts to secure temporary jobs but was aware the company's board was discussing "different scenarios".

Volkswagen said in a statement that the outlook for its employment levels and sales were unpredictable, having on Friday reported lower September deliveries for its core autos division and the 12-brand group as a whole.

"If employment declines temporarily, shortened working hours will be a reasonable option," VW said, adding that the executive board was doing everything it could to secure jobs.

Reeling from the scandal over its rigging of diesel emissions, Volkswagen has said it will cut investment plans at its biggest division by 1 billion euros ($1.1 billion) a year.

Some analysts have said the scandal could cost Volkswagen as much as 35 billion euros ($40 billion) to cover vehicle refits, regulatory fines and lawsuits.

Three people familiar with the matter told Reuters Volkswagen had made several versions of its "defeat device" software to rig emissions tests, potentially suggesting a complex deception. VW in Europe and the United States declined comment.


A worker cleans the facade of a Volkswagen dealership near the Andalusian capital of Seville, southern Spain, October 16, 2015.  REUTERS/Marcelo del Pozo