Every Employee Matters

Transformation, Yes – Zero Growth, No

Employee gatherings clearly outlined the challenges and priorities ahead.

The car industry is undergoing a major transformation, and Škoda Auto is right at the heart of it. Employee gatherings held on 13 October in Mladá Boleslav, 19 October in Kvasiny and 22 October in Vrchlabí, under the motto "Every Piece Matters", delivered two clear messages: the company must manage change faster and more efficiently than its competitors, and the KOVO Trade Union will not allow employees to pay the price for transformation through zero wage growth.

The Whole Industry in Transformation

Holger Peters, Interim CEO of Škoda Auto, did not hide the fact that the good results of recent years are no guarantee for the future. Škoda Auto has solid finances, a strong position in European markets, and the new Epiq and Peaq models are attracting great interest. However, the environment is changing faster than ever, with pressure increasing especially from Chinese carmakers, who combine fast development, technological progress and high cost efficiency.

The response must be greater efficiency, a consistent focus on customers and faster implementation of changes. The key will be new technologies, artificial intelligence, HPO principles, Group synergies, production modernisation and further development in India. Škoda Auto supports the decarbonisation of transport, but insists that the transformation must be economically sustainable, affordable for customers, and must preserve the competitiveness of European carmakers.

Results Are Built on People

Maren Gräf, Board Member for People & Culture, noted that despite the challenging conditions, Škoda Auto is using its production capacity at almost 100 percent. This is one of the best results across the entire VW Group. Credit for this goes to the modern plants, constructive cooperation with the trade unions, and above all, to the employees who flexibly covered extra and flexi shifts.

At the same time, she openly stated that no decision has yet been made on how production capacity will be used after 2030. Whether the Czech plants maintain their competitiveness will depend on investment in education, professional development and modern technologies.

Zero? We Won't Allow It

The strongest reaction from the audience was sparked by Jaroslav Povšík, Chairman of the KOVO Trade Union Works Council, when he addressed the debates on future wage developments within the VW Group. According to him, the trade unions will not agree to any proposal that would limit growth in employee pay. "Zero? We won't allow anything like that," he declared to applause from the packed M14 hall in Mladá Boleslav. He also pointed to the imbalance between what is being asked of employees and what is being offered to them: "They're asking us for zero percent, no supplements, no bonuses, no premiums, while demanding multiples of the work in the area of eMobility. We won't allow that, that's no longer solidarity, that's an attack on hard-working Škoda employees." The trade unions will continue to push for employees to receive fair pay for their work.

Three Pillars, One Family

The Chairman of the KOVO Trade Union also stressed the unity of all locations. "We have three strong pillars here: Mladá Boleslav, Kvasiny and Vrchlabí. Someone is always trying to weaken this, but we need to stand on all three 'legs', and if we're one family, no one will allow the amputation of even one of them," he said. He also gave employees a clear promise: "Together means we stay on board. I want to promise you that there will be no redundancies here!"

Thanks for 120% Commitment

Andreas Dick, Chief Production Officer responsible for Škoda Auto, Central Europe and India, praised the flexibility, professionalism and ability of employees to handle the unusual situations that production repeatedly faced. According to him, they showed "120% commitment", without which the demanding production targets could not have been met.

Education and Technology as the Key to the Future

J. Povšík also reviewed the past four-year term of the trade union organisation, highlighting stable finances, support for employees, and help for regions and people affected by extraordinary events. He sees the key to the future in preparing employees for technological change and the rise of artificial intelligence. He noted the important role played by Škoda Auto Vysoká škola, Škoda Academy and the 42 Prague educational institute. India, meanwhile, represents a major opportunity for growth of the brand as well as for diversifying production and sales.

A Strong Voice for Employees: Povšík Runs for Head of KOVO

At the end of the gathering, J. Povšík announced his candidacy for Chairman of the KOVO Trade Union. "I've decided to take on this challenge, and at this critical moment, when employment and fair wages are under threat, I will run. Your enormous strength, energy and everything you have in you, together with my experience and the Works Council, we'll make it happen," he said.

↑ Vrchlabí

Full Capacity and Questions About the Future

Employees of the Vrchlabí plant, which produces DQ200 gearboxes, gathered on 22 October in the M2 hall, where they met with the company's, the trade union's and the plant's senior leadership. Lars Bürger, Head of PKD – Transmission DQ Production, gave his speech in Czech. He thanked the employees for their outstanding work and the exceptional effort they have put in over recent months. Thanks in part to them, the plant is running at 100% capacity, which is exceptional within the VW Group.

M. Gräf noted that the future of combustion-engine cars, and therefore demand for gearboxes, is uncertain. The carmaker is therefore actively searching for a new production programme for all its plants, paying special attention to the Vrchlabí plant in light of its outstanding results. Proof that this can succeed, she said, are the new GS5 and GS6 battery production projects, thanks to which Mladá Boleslav is now home to the largest plant producing batteries for electric cars within the VW Group.

↑ Kvasiny

Changes Have Their Rules

On 19 October, around 3,500 employees gathered in the logistics tunnel in Kvasiny despite the cold weather. As in Mladá Boleslav, the company's management presented them with the latest developments at Škoda Auto.

Martin Lustyk, head of the KOVO Trade Union in Kvasiny, pointed out that successful current production figures alone are not enough – what matters is how the plant will develop in the future. The automotive industry is changing rapidly, demand for combustion-engine models is declining in favour of electric cars, and this directly affects the Kvasiny plant. As early as spring, the first employees were moved from the Body Shop to assembly. They had to learn to work in a new role, get used to a new team, and sometimes even reorganise their lives. Further changes may come, but they have their rules, and the trade union will ensure these are followed.

He also praised the cooperation with the current plant management, which communicates with the trade union almost daily, resolves issues without unnecessary delays, and does not automatically reject individual union requests. One example among many is the new covered parking for motorcycles, or the promise of a more spacious bicycle shed near gate No. 2.

"The future of the plant will not be secured by one person or one side alone. We need responsible management, a strong and reasonable trade union, and you, the employees, because you know your work matters. If all negotiations are factual and specific, we have a chance to get through this difficult period," M. Lustyk concluded.