Employment and Volkswagen

Topics: Collective bargaining, Wage, Employment Pages: 3 (508 words) Published: March 31, 2013
Explain what is novel and distinctive about the VW model

The Volkswagen model is novel and distinctive by 3 concepts which I'll define below.

First, the concept of the « 28,8 hour working week » which basically replaced the former concept

«  To save labor costs layoffs are inevitable » Indeed, by keep the same wages while cutting the

working hours of their employees innovates. Therefore, they are able to save 20% of the annual

costs with this method. That allows the board of volkswagen to meet the requirements of the works

council which were among other things to remain with the same wages. Besides, concerning the job

security, as far as some workers are concerned by the temporary works, that would be able in that

case to transfer from one plant to another. Obviously, the suitability regarding the new plant

would be carefully reviewed case by case according to their competencies and experience. As a

matter of fact, the workers will not be able to decline an offer for an other job if it fits them. This

has been also agreed by the collective bargaining agreement. Moreover, Volkswagen distributed all

annual special payments to its workers.

The change to the « 28,8 hour working week » also shifted the numbers of the working days.

Indeed, most employees switched to four day working week while regarding the needs of

departments some switched from three to five day working week.

The second new element is the « contract » between the newcomers in the market, that is to say the

young people and the old ones. Indeed while being still at school in apprenticeship, the young

generation of future workers would be offered the possibitlity to get into the world of labour step by

step until reaching the final stage which would be a full-employment within volkswagen.

Nonetheless, they will have the conditions of the part time work. Whereas, the situation is the

reverse for the old generation, hence, as soon...
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