The works council of embattled carmaker Porsche has warned of the potential relocation of work from Germany and the associated risk to "one in four jobs" at the company.
According to works council chairman Ibrahim Aslan on Wednesday, the board is threatening, in ongoing cost-cutting negotiations, to move development and production to countries with significantly lower wage levels. "This puts one in four jobs at Porsche AG at risk," he stated, following a statement from the employee representatives at company meetings held at Porsche's headquarters in Stuttgart-Zuffenhausen and at the Weissach development center.
Aslan called for investment and negotiations on equal footing instead of unilateral demands. "The workforce is unsettled and dissatisfied--this was clearly expressed by colleagues at the works meetings." Outgoing Porsche CEO Oliver Blume, set to leave at the end of the year, had promised such talks. "We hope that his statement at the works meetings, that the board supports the German Porsche sites, has also reached the negotiators."
Porsche is currently facing a severe crisis due to a slump in sales in China, underperforming electric vehicles, and burdensome U.S. import tariffs. At the beginning of the year, a cost-saving program was negotiated with the works council, including the reduction of a total of 1,900 permanent positions. Around 2,000 temporary workers did not receive contract extensions. Since October, further measures have been under discussion to reduce personnel costs. Porsche employs around 40,000 people.
A company spokesperson pointed to the "immense challenges" facing the automotive industry. Porsche's competitiveness will determine the company's future. "In light of changing conditions, significant cost optimizations are absolutely necessary." These matters, the spokesperson added, continue to be discussed confidentially "and on equal terms" with employee representatives.
(Reporting by Ilona Wissenbach, edited by Ralf Banser. For inquiries, please contact the editorial management at frankfurt.newsroom@thomsonreuters.com)
