Volkswagen workers began two-hour strikes at nine plants across Germany on Monday to underline their resistance to wage cuts and plant closures the company says are necessary to cope with a downturn in the European car market.
The halted plants include the company’s base plant in Wolfsburg, where workers are due to hold a rally against cost-cutting by the carmaker’s management, in what would be the first time they face the threat of Volkswagen’s first plant closures in their country.
The start of the strikes represents a further escalation in the dispute between Europe’s top carmaker and its workers over mass layoffs, wage cuts and possible plant closures – drastic measures the company says it cannot rule out in view of competition from China and declining consumer demand.
Volkswagen union representatives voted on November 22 to hold limited strikes at German plants from early December after talks on wages and plant closures failed. IG Metall negotiator Thorsten Groeger said:
“If necessary, this will be the toughest collective bargaining ever undertaken by Volkswagen.”
The automaker said it continues to rely on constructive dialogue to find a sustainable solution. Adding that the company had taken measures in advance to ensure a base level of deliveries to customers and minimise the impact of the strike, A spokesman said in response to the union’s statement:
“Volkswagen respects the right of employees to participate in a warning strike.”
Volkswagen workers demands
Last week, the union proposed measures it said would save €1.5bn, including scrapping bonuses for 2025 and 2026, but Europe’s biggest carmaker rejected the measures.
Volkswagen has demanded a 10 per cent pay cut, arguing it needs to cut costs and boost profits to protect market share amid cheap competition from China and falling car demand in Europe. The company is threatening to close plants in Germany for the first time in its 87-year history. Groeger added:
“Precautionary strikes will begin at all plants from Monday. How long and how intense this confrontation should be is Volkswagen’s responsibility at the bargaining table.”
Workers’ representatives and management will meet again on December 9 to continue negotiations on a new labour agreement.
