While unions are calling for a law against excessive use of “service provision contracts” (Werkverträge), the Handelsblatt economic daily revealed, on September 2, that Volkswagen was apparently also cutting costs in its logistics chain by using contracts that may be perceived as illegal. The company’s management and powerful works council denied these accusations, but they show that the issue of excessive appeal to subcontracting has become a highly sensitive issue in Germany. In early August, Daimler was sentenced by the Regional Labor Court of Stuttgart for employing two bogus self-employed workers. The company appealed and all eyes are now on the Federal Labor Court. (Ref. 130521)
An unclear situation. The Handelsblatt claims that, in its main factory in Wolfsburg, Volkswagen appealed to cheap subcontractors for its logistic operations. This isn’t illegal per se but, whereas logistics for the Golf are done by permanently VW employees, Tiguan components are transported by employees in the Ceva Logistics subcontracting firm. Ceva Logistics’ 450 employees work in three shifts and are paid in keeping with the collective agreement signed by the Verdi services union. A for
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