A letter by Volkswagen India’s top management meant to motivate workers to enhance their productivity and gear up to meet difficult times ahead has instead caused panic and job cut fears among workers at the company’s manufacturing unit at Chakan, near Pune.
The letter has cautions about ‘challenging’ times and cutthroat competition among Volkswagen plants globally that could impact jobs here, and the possibility of rollback of future investments in case workers fail to meet production targets.
The letter, written by Volkswagen India’s head, goes on to say that the three-shift operations at the plant could reduce to a single shift operation, resulting in large-scale layoffs.
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Volkswagen, which has suffered a loss of $10 billion due to an emissions scandal, is on a cost-cutting and production improvement drive to recoup the losses.
A senior company official confirmed the letter but declined to share details, citing confidentiality. He said it was a motivational letter to urge workers to deliver their best in challenging times. The letter was misinterpreted, he said.
However, workers have expressed concern.
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An employee, asking not to be identified, said: “As a shop floor worker, how am I responsible if the company does not meet export targets and fails to achieve different milestones and desired results? Why should I be penalised? The letter has created a sense of uncertainty.”
Kishore Dhakole, founder president, Shramik Ekta Mahasangha, a Pune-based trade union, said, “These are usual multinational tactics to link jobs to productivity rather than the efficiency of a worker. The management is capable of controlling production by not maintaining the stocks, and putting the blame of production loss on workers. The management, through this letter, just wants to extract maximum efficiency from workers and create fear in their minds.”
In India, the company produces Polo and Vento cars which are mostly exported. Soon, it will start the production of the Ameo, its new hatchback designed for the Indian and exports market.
Answering queries from The Hindu , Dr Andreas Lauermann, president and managing director, Volkswagen India Private Ltd, said, “We recently announced the start of third shift to support the additional production volumes that will be created by the new model Ameo, and increased export demands. To meet higher production volumes, we also hired additional workforce at the Chakan plant, and we are not willing to cut down on the workforce. In fact, Volkswagen India is aiming for a growth in production of about 15 per cent in calendar year 2016 as compared to 2015.”
He said that as an employer, it is the company’s duty to safeguard all newly created jobs in difficult times: “that’s what the employees expect as well”.
Justifying the letter, he said, “On the other side, it is necessary that all the employees contribute towards the company’s targets, and understand the expectations of the company. It is also the responsibility of the employees to work with 100 per cent dedication, especially in difficult times. This has to be communicated to gain common understanding and at the same, it underlines the sense of responsibility of the management for its employees.”