Tens of thousands of Volkswagen employees across Germany initiated two-hour strikes on Monday, December 2, 2024, affecting nine car and component plants.
The strikes halted assembly lines and shortened shifts at key sites, including the main plant in Wolfsburg, which employs around 70,000 people and produces the Golf and Tiguan models.
The strikes are in response to Volkswagen’s plans to alter labor agreements, potentially close factories, implement a 10% pay reduction for German workers, and freeze wage increases for the next two years.
Workers displayed signs with messages like “Warning strike is our right” and “FIGHT FOR OUR FUTURE”.
Background:
– VW terminated a 30-year job security agreement in September 2024
– The company aims to cut €18 billion ($19 billion) in expenses
– VW is facing declining earnings and increased competition, with a 64% plummet in third-quarter profits reported in October
IG Metall, the union representing VW workers, has proposed a €1.5 billion ($1.6 billion) cost-cutting plan and suggested establishing a fund for reduced working hours.
The union has warned of potential escalation to full-day walkouts or indefinite shutdowns if an agreement is not reached.
Thorsten Gröger, IG Metall’s chief negotiator, stated, “If necessary, this will be the toughest wage dispute Volkswagen has ever seen”. Daniela Cavallo, head of Volkswagen’s works council, emphasized the need for unity, declaring that mass layoffs, wage cuts, and plant closures are unacceptable.
The next negotiation session is scheduled for December 9, 2024. This meeting is expected to be crucial in determining whether the dispute will escalate or move towards resolution.
The strikes at Volkswagen highlight the broader challenges facing Germany’s automotive industry and economy. As the country grapples with declining industrial orders and increased global competition, particularly in the electric vehicle market, the outcome of this labor dispute could have far-reaching implications for one of Germany’s most iconic automakers.
Source: Reuters