Volkswagen factories across Germany were disrupted on Monday as workers launched strikes in response to proposed job cuts, wage reductions, and potential factory closures. The labor unrest follows months of escalating tensions between the automotive giant and its employees, with union leaders signaling a protracted and intense battle if their demands are not met.
Nine Volkswagen plants, including car and component factories, participated in what were described as "warning strikes." Workers held banners with messages like "strike ready" and "warning strikes-our right." IG Metall, the union representing Volkswagen employees, has warned of significant escalation if negotiations fail.
"If need be, it will be the toughest collective bargaining battle Volkswagen has ever seen," said Thorsten Gröger, IG Metall's chief negotiator. He accused Volkswagen of aggravating the situation, saying, "Volkswagen has set fire to our collective agreements."
The strikes come in the wake of Volkswagen's announcement in September of sweeping cost-cutting measures. These include plans to close at least three factories, implement a 10% pay cut, and lay off thousands of workers. The closures would mark the first domestic shutdowns in Volkswagen's 87-year history.
Volkswagen defended its position, stating that restructuring is necessary to address declining demand and high production costs. The company said in a statement on Sunday that it "respects the right of employees to take part in a warning strike" and remains committed to "constructive dialogue to find a sustainable and mutually supported solution."
Daniela Cavallo, head of Volkswagen's works council, called on workers to stand firm. The only way through a crisis is with the workforce, not against it, she said on Monday. Cavallo emphasized that factory closures, mass layoffs, and wage reductions are "red lines" for workers and their representatives.
IG Metall and the works council have proposed alternatives to factory closures, including shorter working hours and freezing executive bonuses. However, Volkswagen dismissed these proposals, stating they would not provide the "long-term financial relief" required to navigate the company's current challenges.
Volkswagen's difficulties come at a time when the German automotive sector is facing significant headwinds. The transition from internal combustion engines to electric vehicles, coupled with declining consumer demand and rising competition from Chinese manufacturers, has created a challenging economic environment. Volkswagen, Germany's largest employer, has cited falling demand for electric vehicles as a key factor driving its restructuring efforts.
Volkswagen's third-quarter earnings reflected these challenges, with profits plunging nearly 60% year-over-year. Earnings before tax dropped to €2.4 billion from €5.8 billion in the same period last year, primarily due to declining sales in China, the company's largest market.
The strikes mark the end of a "peace obligation" that had previously prevented industrial action. Gröger warned of potential escalation if the December 9 negotiations fail to produce meaningful progress. "Those who ignore the workforce are playing with fire," he said.
Volkswagen employs nearly 300,000 workers in Germany, with approximately 120,000 covered by collective bargaining agreements. The union's latest actions have drawn widespread attention as an example of growing labor unrest in Europe's largest economy.
