Volkswagen Faces Major Strikes as Workers Protest Across Germany
Volkswagen is grappling with significant industrial action as tens of thousands of employees stage strikes at its facilities across Germany. These protests, the largest at the automaker’s domestic operations since 2018, began on Monday and are expected to last several hours.
The strikes follow protracted collective bargaining talks, during which Volkswagen declined to rule out mass layoffs and factory closures in Germany. The company has defended such measures as necessary to stay competitive amidst declining European demand and mounting competition from Chinese electric vehicle manufacturers.
With the expiration of a “peace obligation” on Saturday — a clause that had temporarily prevented industrial action — strikes were authorised from Sunday onwards at nearly all of Volkswagen’s German plants.
Labour Union’s Firm Stance
Thorsten Groeger, the lead negotiator for the labour union IG Metall, issued a stern warning, calling this potentially the “toughest wage dispute Volkswagen has ever seen.” In a statement, he criticised the company for its approach to negotiations, accusing management of escalating tensions rather than resolving them.
“Volkswagen has set our collective bargaining agreements on fire and, instead of extinguishing this fire during three rounds of negotiations, the management board keeps throwing open barrels of gasoline onto it,” Groeger said.
Nine of Volkswagen’s ten German factories are participating in the strikes, with one site exempt due to a separate collective bargaining agreement. IG Metall hinted that, if unresolved, the strikes could escalate to 24-hour warning walkouts or even indefinite strikes, pending further consultation with union members.
Mounting Challenges for Volkswagen
The industrial action comes as Volkswagen faces declining profitability. The company’s operating profit for the first nine months of the year dropped by 20%, with vehicle sales lagging due to weak demand in China and growing competition from local EV manufacturers.
In a statement on Sunday, Volkswagen acknowledged the strikes and assured that steps had been taken to minimise disruptions. The company also reaffirmed its commitment to “constructive dialogue” to resolve the dispute.
Volkswagen has previously indicated that it may need to close factories in Germany for the first time in its 87-year history. In October, the automaker suggested a 10% pay cut for employees as part of cost-saving measures to secure its future.
Union Proposes Alternatives
In a conciliatory gesture, IG Metall proposed forfeiting €1.5 billion ($1.6 billion) in pay increases if Volkswagen executives agreed to maintain factory operations and reduce their bonuses.
The next round of negotiations between Volkswagen and IG Metall is scheduled for December 9, leaving both sides under pressure to reach an agreement before tensions escalate further.
