Volkswagen's problems are mounting as workers prepare to strike across Germany
Tens of thousands of Volkswagen workers will take part in strikes Monday at plants across Germany, the IG Metall trade union said, marking the biggest walkout at the automaker's domestic jobs since 2018.
The departure, which is scheduled to last a few hours, follows weeks of negotiations in which VW refused to lay off more people and the closure of machines in the domestic market – drastic measures the company says are necessary to improve its fortunes amid emerging competition. China and weak European demand.
The so-called “silence bond” between workers and the company, which prevents industrial action, expired on Saturday, allowing strikes to take place from Sunday at almost all of Volkswagen's German factories.
“If necessary, this will be the most serious wage dispute Volkswagen has ever seen,” IG Metall spokesman Thorsten Groeger said in a statement on Sunday. “How long and how intense this dispute will be is Volkswagen's task at the negotiating table.”
“Volkswagen has set our bargaining agreements on fire, and instead of putting out the fire during three negotiations, the board of directors keeps throwing barrels of gasoline at it,” he added.
The strikes will be the first major strikes Volkswagen has faced since 2018, according to IG Metall, when 50,000 workers were idle at the plants over pay. Although the work stoppage will last only a few hours, it is possible that 24-hour warning strikes could be called later this year. Indefinite strikes can also be called as a last resort, but only after members are consulted again, IG Metall said.
The strikes represent a new headache for Europe's biggest carmaker, which saw operating profit in the first nine months of the year fall by a fifth from a year earlier, as its flagship brand struggles. Car sales are also down due to weak demand especially in China, where it is losing market share to Chinese electric car companies.
A spokesperson for Volkswagen said in a statement that the car company has taken steps in advance to reduce the impact of this strike on its factories and customers.
“Volkswagen respects the right of workers to take part in a warning strike,” the spokesperson said, noting that the company remains committed to “constructive dialogue” to find a solution.
Volkswagen said it may have to close plants in Germany for the first time in its 87-year history. In October, it said workers' compensation would need to be cut by 10% to make it cost-effective and protect the company's future.
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