VAG Group v/s Labour Unions

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Fri 27 Aug 2004 23:15
VAG Group v/s Labour Unions - hillman
Pardon me if somebody has already covered this and I've missed it.

There was a very interesting article in the 'Independent' on Tuesday this week regarding the struggle of VAG to remain profitable. The German labour unions and the employers had a very cosy relationship for 50 years. But, the economic scene of things is changing and the cosy relationship seems to be over, at least on the surface.
VAG have announced that a pay freeze is necessary, at least for two years, and delicately refer to the alternative of moving production abroad. The unions have replied with a demand for a 4% across-the-board pay rise and job security for ten years. Shades of Red Robo!
VAG have a winning hand here, they could easily move production abroad ? don?t they already manufacture in Brazil, Spain, Czechoslovakia? Anybody know of any others?

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Sat 28 Aug 2004 00:18
VAG Group v/s Labour Unions - Robin Reliant
All those employed by European car manufaturers face the same long term problem. EU imposed welfare laws and restrictions on working hours make it more attractive for producers to up camp and depart to the developing countries where they have a more flexible approach to working conditions.

Unless the EU stops regarding industry as a branch of the Social Security System manufacture will cease to exist in any large scale within the Union.
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Sat 28 Aug 2004 05:42
VAG Group v/s Labour Unions - THe Growler
The EU will most certainly implode under the weight of its own idiocy at some point. I have been involved in recruiting staff for call centres in the Philippines for US and EU companies, because of (a) labour costs and lazy work ethics in the origin countries and (b) the fact this country is the only one in Asia where a high standard of English is spoken, thanks to the country's days as an American colony. Filipinos are eminently trainable and have a strong work ethic. With modern technology of course it doesn't matter where you put your staff anyway, and these governments have woken up to that.

Over the last 3 years some 200 call centres and IT code-writing operations have sprung up here as investments by foreign companies. How long before manufacturing parts takes off, then whole vehicles? (cf Thailand for starters). Already factories here are bringing Asian and other lo-cost country-manufactured parts in and assembling them here for re-export.

The Government has created duty-free economic zones for this purpose.

China is gathering its skirts - wait till that takes off as a manufacturing base. It is already flooding Asia with cheap scooters and motorcycles. Bye-bye EU.

Labour unions are so stupid and stuck in their 1950's ideology they couldn't find their way out of a paper bag.
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Sat 28 Aug 2004 09:42
VAG Group v/s Labour Unions - Stuartli
don?t they already manufacture in Brazil, Spain, Czechoslovakia? Anybody know of any others?>>


Belgium, Portugal, Mexico, South Africa, the US etc.

One of the reasons was because of very strong unions and high labour costs - if you keep going to the well, eventually the water will run out.


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