That day, the first letter in the stack was from Germany, signed by Herbert Waltl, the production manager for several of the European Volkswagen (VW) plants.
After reading the letter, Carlos phoned Patrick Danau, general manager of VW Espana, and requested to meet with him that morning to discuss a last-minute development: "Patrick, we should revoke the labor agreement and start negotiating the new 8th Collective Agreement with all the labor unions, since the previous one expires in a couple of months. A couple of hours ago, I received a letter from Germany giving me directions to pursue precisely the same labor prices as SEAT. I am deeply concerned, Patrick; I cannot cut employee salaries any further. How can we reduce labor costs if we are more expensive? It's not possible!"
Volkswagen Navarra, 8th Collective Agreement (A) Case Study Solution
PUBLICATION DATE: September 17, 2014 PRODUCT #: IES332-HCB-ENG
This is just an excerpt. This case is about LEADERSHIP & MANAGING PEOPLE
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