Volkswagen employees in Germany are set to strike in early December, following failed negotiations over drastic cost-cutting plans. Union IG Metall described the strikes as “necessary,” stating, “Strikes are both possible and necessary starting in early December.”
Volkswagen’s management will determine how intense and prolonged the conflict becomes at the negotiation table. “The VW workforce across the nation is ready to strike,” IG Metall emphasized, according to RTE News.
Volkswagen’s Challenges and Proposed Solutions
Volkswagen faces increasing competition from Chinese carmakers, slowing demand for electric vehicles (EVs), and a struggling German economy. In October, the company announced plans to close at least three German production plants and cut tens of thousands of jobs. Remaining employees were asked to accept a 10% pay reduction.
Additionally, the company intends to outsource entire divisions and scale down operations at plants that remain open. These measures followed Volkswagen’s second profit warning in three months, with a reported brand margin of only 2.1%.
Arne Meiswinkel, Volkswagen AG’s chief negotiator, highlighted the company’s challenges. “The current trends in the European auto industry, especially in Germany, are deeply concerning. At this level, we cannot finance our future,” he explained. Meiswinkel stressed that reducing labor costs is critical to securing jobs and ensuring the company’s survival.
Workers Offer Alternatives
The workers’ council proposed an alternative solution to Volkswagen’s cost-cutting measures. It suggested that upper management forgo their bonuses to help reduce expenses.
This proposal reflects growing dissatisfaction among employees regarding management’s approach. IG Metall has made it clear that the strikes are a direct response to these unresolved tensions.