Volkswagen workers in Germany will begin warning strikes on Monday, marking the first large-scale walkouts at the company’s domestic operations since 2018. The strikes follow escalating tensions between Europe’s leading carmaker and its workforce over issues such as mass layoffs, wage cuts, and potential plant closures. These measures, according to Volkswagen, may be necessary due to increasing competition from Chinese automakers and weakening consumer demand.
On November 22, labour representatives at Volkswagen voted for limited strikes starting in early December after unsuccessful negotiations regarding wages and plant closures. IG Metall, the labour union, has warned that the dispute could evolve into the toughest collective bargaining battle in Volkswagen’s history.
Thorsten Groeger, an IG Metall negotiator, emphasized the seriousness of the situation, stating that this would be “the toughest collective bargaining battle Volkswagen has ever seen.” In response, Volkswagen acknowledged the union’s right to strike, but stressed that it remains committed to dialogue in order to find a sustainable solution. The company has also taken steps to minimize the impact on customers by ensuring a basic supply level during the strikes.
Warning strikes in Germany typically last only a few hours, but the union’s recent proposal to forgo bonuses for 2025 and 2026, aimed at saving 1.5 billion euros, was rejected by Volkswagen. The company is seeking a 10% wage reduction to cut costs and boost profitability in response to challenges from cheaper Chinese car manufacturers and a slump in European demand.
Volkswagen’s management has also warned of potential plant closures in Germany, a move that would mark the first in the company’s 87-year history. Groeger criticized the management’s approach, claiming that they were exacerbating the situation by undermining collective agreements rather than working toward resolution.
The next round of negotiations between management and labour representatives will take place on December 9, with unions insisting on long-term plans to safeguard every Volkswagen plant in Germany.
