The tough supply crisis for microchips and other important electronic components will probably force Volkswagen to cancel almost all night shifts at its Wolfsburg headquarters from mid-April. According to internal company information, this became clear at a meeting of the working hours commission on Friday. Accordingly, in the period after the Easter holidays (April 17/18), the world’s largest car factory should initially only work on one assembly line, including at night. Everywhere else, a two-shift instead of three-shift operation will probably apply.
The background is the lack of parts for semiconductors. This has been leading to supply bottlenecks throughout the industry for months and is blocking production and deliveries, especially in the vehicle industry. At VW, there is talk of a “dramatic underutilization of the main plant”, which is now having noticeable consequences for the shift system. According to management’s plans, all night shifts by employees in Golf production will soon be eliminated. An entire line of the Tiguan small SUV, which is also in high demand, is affected.
Initially only work on the assembly line, which is responsible for the rest of the Tiguan volume in addition to the Touran and Tarraco, is to continue at night. The works council expressed reservations. “We have taken note of the company’s intentions,” said Chairman Daniela Cavallo. In view of the supply problems from the group management around CEO Herbert Diess, she had already called for more decisive countermeasures in the autumn instead of new savings discussions. Now she said: “Our colleagues can’t help it that the order books are overflowing, but we can’t get the necessary quantities due to the lack of semiconductors.” If the night shifts, including the corresponding supplements, are eliminated, the workforce is entitled to compensation for the loss of salary. “There’s nothing else that can be done with us.”
Lack of material slows down the car manufacturer
Throughout 2021, weekly or monthly shifts were canceled at VW, but also at other car companies. Short-time work increased again after the industry first believed that it had overcome the worst shortfalls caused by the Corona slump in demand. But many new orders could not be processed due to a lack of material – employment fell away, temporary workers had to go. Half-finished vehicles had to be parked on the factory premises.
VW HR Director Gunnar Kilian explained that a change in the Wolfsburg shift model was necessary: ”The current situation is not a viable solution for everyone involved. In order to maintain competitiveness and secure employment in the long term, an adjustment is inevitable.” It is a “strategic core task to further align the location for the future”. Unfortunately, the elimination of hardship allowances for the night shift is part of it. There should also be intensive negotiations on the latter point. Cavallo announced: “We are fighting for partial compensation. If night shifts and the associated surcharges are eliminated, the loss in pay must be cushioned.”