Volkswagen workers strike over looming pay cuts and factory closures

Volkswagen workers across nine German plants are standing up to the company. The strikes started today, December 2, and are a direct response to VW's proposed 10% wage cut and the threat of factory closures. The trouble comes at a time when the automotive industry is grappling with shifting market dynamics, and the rise of cheaper competition from China.

The strikes are a result of failed negotiations between VW and the IG Metall union. The union, representing the workers, proposed alternative cost-saving measures, including forgoing bonuses for 2025 and 2026, and establishing a fund to support temporarily reduced working hours in overcapacity sectors. Thorsten Groeger, the union's chief negotiator, stated that "The Group's finances are not yet in dire straits, like they were in crises in the 1970s and 1990s. We can see room to take action and make investments to correct the expensive mistakes of the past."

VW doesn't budge and demands significant wage cuts to enhance profitability and competitiveness. A source within the company revealed to Reuters that the union's proposals offer only a temporary reprieve.

The situation gets even more complicated by the closure of VW factories in Germany. This drastic measure is unprecedented in the company's history, and only adds fuel to the fire.

The next round of negotiations between IG Metall and VW will take place on December 9th. The stakes are high, with the possibility of escalating to 24-hour strikes or even "unlimited strikes" if an agreement cannot be reached. The outcome of these negotiations will impact the livelihoods of thousands of VW workers. It could also set a precedent for labor relations in the German automotive sector.

Via