Volkswagen faces its biggest labor unrest since 2018 as thousands of workers strike across Germany, intensifying challenges for Europe’s largest automaker.
On Monday, tens of thousands of Volkswagen employees staged strikes at nine out of ten of the company’s German plants. This large-scale walkout marks the first major strike at Volkswagen’s domestic operations in six years. The industrial action, organized by the IG Metall labor union, follows the expiration of a “peace obligation” on Saturday, which previously prohibited strikes during negotiations.
Key Dispute Over Layoffs and Plant Closures
The strikes come amid stalled collective bargaining talks. Workers are protesting Volkswagen’s reluctance to rule out potential mass layoffs and factory closures in Germany. These measures are part of the company’s cost-cutting strategy to counter competition from Chinese electric vehicle manufacturers and declining demand in Europe.
Thorsten Groeger, IG Metall’s chief negotiator, said, “If necessary, this will become the toughest wage dispute Volkswagen has ever seen.” He criticized the company for fueling tensions during negotiations, stating, “Volkswagen has set our collective bargaining agreements on fire and keeps adding fuel to the flames.”
Scale of Strikes and Future Actions
Currently, the strikes are planned to last a few hours, but IG Metall has hinted at more extensive actions if negotiations fail to progress. This could escalate to 24-hour strikes or indefinite industrial action, pending consultation with union members.
The dispute is the latest blow for Volkswagen, whose operating profit for the first nine months of the year dropped by 20%. Sales have also fallen, particularly in China, where the company is losing market share to local electric vehicle brands.
Volkswagen’s Response
A Volkswagen spokesperson said the company had taken measures to minimize the strikes’ impact on operations and customers. The company expressed its commitment to maintaining a “constructive dialogue” with workers to reach a resolution.
In a bid to stay competitive, Volkswagen has proposed a 10% pay reduction for employees and hinted at potential plant closures — a first in its 87-year history. IG Metall has offered to forgo wage increases worth €1.5 billion ($1.6 billion) if Volkswagen pledges to preserve jobs and cut executive bonuses instead.
What’s Next?
The fourth round of negotiations is scheduled for December 9. Workers and management remain at odds over the automaker’s plans, which could significantly reshape its operations in Germany.
