VOLKSWAGEN UNVEILED THURSDAY A LONG-AWAITED OFFER TO EMPLOYEES AT ITS OVER-STAFFED WESTERN GERMAN FACTORIES OF FINANCIAL COMPENSATION IF THEY LEAVE THE COMPANY, DPA REPORTED. UNIONS HAVE BEEN ALARMED SINCE VOLKSWAGEN CHIEF EXECUTIVE BERND PISCHETSRIEDER ISSUED A VAGUE FOREWARNING IN FEBRUARY THAT 20,000 STAFF WILL BE "AFFECTED" BY RESTRUCTURING. THE COMPANY, WHICH ALSO MAKES AUDI, SKODA AND SEAT CARS ELSEWHERE, SAID 85,000 EMPLOYEES AT ITS VOLKSWAGEN-BRAND VAN AND CAR FACTORIES IN WOLFSBURG AND OTHER WESTERN GERMAN CITIES WERE RECEIVING CASH-PACKAGE OFFERS OF UP TO 195,480 EUROS (246,000 DOLLARS) EACH. VOLKSWAGEN IS OBLIGED TO OFFER INDUCEMENTS AS IT HAD PREVIOUSLY ASSURED STAFF THERE WOULD BE NO MANDATORY LAYOFFS. DAIMLERCHRYSLER LAST YEAR OFFERED SIMILAR BUYOUTS TO ITS MERCEDES-BENZ CAR WORKERS. THE ANNOUNCEMENT SAID THE MULTI-MILLION-EURO RESTRUCTURING BUDGET INCLUDED EXTRA SEVERANCE BONUSES OF 54,000 EUROS FOR THOSE WHO DEPARTED BEFORE A DEADLINE OF THE END OF SEPTEMBER. THE BIGGEST EUROPEAN CARMAKER BY VOLUME, STOCKMARKET-LISTED VOLKSWAGEN HAS BEEN STRUGGLING WITH WEAK PROFITS AND HIGH MANUFACTURING COSTS THAT ARE MAINLY BLAMED ON OVER-MANNING.
