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VW world works council welcomes China

1 November, 2010Volkswagen's world works council discusses the implementation of the group's labour relations charter. For the first time, worker and management representatives from the plants in China attend the meeting.

GERMANY: Volkswagen's world works council gathered 150 participants to an annual meeting on October 27-29 in the German city of Emden. The delegates warmly welcomed labour and management participants from China who attended the meeting for the first time.

In a presentation, the works council member from Shanghai informed the world council of recent improvements in Chinese labour law, which offer workers new rights. About 80 per cent of VW's 23,000 workers in China are unionized. A works council was set up to discuss among other things collective bargaining and health and safety issues. The Chinese workforce will more than double in the coming years.

IMF general secretary Jyrki Raina and automotive department director Helmut Lense addressed the meeting on IMF's work on international framework agreements (IFA) and trade union networks. They called Volkswagen a benchmark and an example for other transnational companies.

Several speakers emphasized the need to ensure union presence at a plant under construction in Chattanooga, Tennesee in the U.S. The local business community and Republican politicians have vehemently opposed unionization at the facility which will start production next year and will eventually employ 2,000 workers. Volkswagen's production facilities around the world are unionized.

VW's international framework agreement with the IMF acknowledges the basic right of all employees to establish and join unions and employee representations. According to this joint declaration, the company, unions and employee representatives respectively work together openly and in the spirit of constructive and co-operative conflict management.

The world council discussed the implementation of a charter on labour relations signed a year ago. The charter aims to improve world-wide labour relations standards and guarantee workers' rights to information, consultation and participation at all locations.

Volkswagen employs 375,000 people around the world and encompasses other well-known brands such as Audi, Skoda, Porsche, Seat, Scania, MAN, Bentley and Lamborghini.