Thousands of Volkswagen employees halted work at nine German plants, staging a four-hour strike as negotiations over cost-cutting measures intensified. This follows weeks of tensions between the carmaker and unions regarding plans to reduce costs by €10 billion through pay cuts, job reductions, and potential plant closures.
The renewed talks were prompted by the unions’ counterproposal, which they claim would save Volkswagen €1.5 billion by reducing bonuses and dividends. However, Volkswagen’s chief negotiator, Arne Meiswinkel, deemed the proposal insufficient, stating, “A sustainable solution requires further cost reductions.”
Unions Demand Shared Responsibility
Volkswagen justifies its aggressive cost-cutting strategy by citing weak demand in Europe and fierce competition in China. The company insists that reducing high labor costs is essential to maintain competitiveness.
Unions, however, argue that management and shareholders should share the burden. “We demand that all contribute to the solution,” said Daniela Cavallo, chief employee representative, during a recent rally in Wolfsburg that drew nearly 100,000 workers.
German Chancellor Olaf Scholz weighed in, urging Volkswagen to reconsider plant closures while emphasizing the need for productive dialogue between the company and employees.
With strikes escalating and unions threatening further industrial action in 2025, the outcome of the latest negotiations could determine whether the standoff ends in compromise or intensifies further.