FRANKFURT, Reuters -Volkswagen CEO Herbert Diess attempted to diffuse a dispute over the pace and reforms needed to compete with Tesla (NASDAQ) for the electric car throne. Diess addressed Wolfsburg workers on Thursday.

Diess stated that only as a group can Volkswagen (DE) be made future-proof. He was speaking to a meeting of staff, which also included Daniela Cavallo the works council boss, Joerg Hofmann, Joerg Weil, and Lower Saxony’s state premier Stephan Weil, who is also head of the powerful trade union IG Metall.

Diess’s ambition to get Tesla reforms in line with Tesla was criticized by labour officials. However, Diess acknowledged that workers made great efforts to transform Volkswagen so it could compete in an industry that is constantly changing.

Cavallo had previously criticised Diess’ communication style over the past weeks. She said it fueled concerns among workers about whether the transformation would result in thousands of job losses.

“We are tired of hearing that the works council seems only to be concerned about maintaining the status-quo,” she stated, noting that both workers and labor representatives supported the necessary overhaul.

After the conflict between labour and representatives reopened, three sources familiar with the situation said that Diess will be the topic of a special Volkswagen committee.