WOLFSBURG, Germany – Tens of thousands of workers at Volkswagen’s German plants launched strikes on Monday, December 2, 2023, marking the largest industrial walkouts at the automaker’s domestic operations since 2018.
The strikes, which are expected to last several hours, come after weeks of tense collective bargaining negotiations between the company and the labour union IG Metall.
The disputes have escalated following Volkswagen’s refusal to rule out mass layoffs and the closure of plants in Germany, measures the company says are necessary to secure its future amid growing competition from China and a sluggish European car market.
The expiry of a so-called “peace obligation” on Saturday allowed workers to take industrial action from Sunday at nearly all of Volkswagen’s factories in Germany.
The move comes after the carmaker failed to reach an agreement during the latest round of talks.
“If necessary, this will become the toughest wage dispute Volkswagen has ever seen,” said Thorsten Groeger, the chief negotiator of IG Metall, in a statement on Sunday.
“How long and intense this dispute will be is Volkswagen’s responsibility at the negotiating table.”
Groeger criticised Volkswagen’s handling of the negotiations, accusing the management of exacerbating the situation.
“Volkswagen has set our collective bargaining agreements on fire, and, instead of extinguishing this fire during three rounds of negotiations, the management board keeps throwing open barrels of gasoline onto it,” he said.
According to IG Metall, workers at nine of Volkswagen’s 10 plants in Germany are participating in the strikes, with one plant excluded due to a separate collective bargaining agreement.
While the current walkouts are planned to last just a few hours, the union warned that longer strikes — including 24-hour stoppages — could be called later this year.
Indefinite strikes may also be considered as a last resort, but only after further consultations with union members.
The strikes represent a significant challenge for Volkswagen, Europe’s largest carmaker, which has already been grappling with a sharp decline in profits.
The company’s operating profit for the first nine months of 2024 fell by 20%, driven in part by weaker demand in key markets, including China, where Volkswagen has lost market share to domestic electric vehicle manufacturers.
A spokesperson for Volkswagen acknowledged the ongoing strikes in a statement, confirming that the company had taken steps to minimise the impact of the walkouts on its operations.
The company also reiterated its commitment to engaging in “constructive dialogue” with the union in an effort to reach a resolution.
Despite this, the company has warned that drastic measures may be necessary to secure its future.
In October, Volkswagen announced that it might be forced to close factories in Germany for the first time in its 87-year history.
The company also indicated that employee wages could be cut by 10% as part of efforts to reduce costs and stay competitive.
In response, IG Metall has said that workers are willing to forgo pay increases amounting to €1.5 billion ($1.6 billion) if Volkswagen executives agree not to close any factories and sacrifice part of their bonuses.
The fourth round of negotiations between Volkswagen and IG Metall is scheduled for December 9, with both sides hoping for a breakthrough before the situation escalates further.
