Tens of thousands of Volkswagen workers will take part in strikes at factories across Germany on Monday, the IG Metall union said. This is the largest strike at the automaker’s domestic operations since 2018.
The strikes, expected to last several hours, follow weeks of collective bargaining in which VW refused to rule out mass layoffs and possible factory closures in its home market – drastic measures the company says are necessary to shore up its fortunes amid competition from China and weaker European demand.
A so-called “peace commitment” between workers and the company, which banned industrial action, expired on Saturday, allowing strikes to take place at almost all of Volkswagen’s German factories from Sunday.
“If necessary, this will be the most serious wage dispute Volkswagen has ever seen,” IG Metall chief negotiator Thorsten Groeger said in a statement on Sunday. “How long and intense this dispute will last is Volkswagen’s responsibility at the negotiating table.”
“Volkswagen has set fire to our collective bargaining agreements, and instead of putting out this fire during three rounds of negotiations, the board continues to throw open barrels of gasoline on it,” he added.
According to IG Metall, the strikes will be the first large-scale strikes that Volkswagen has faced since 2018, when 50,000 workers shut down factories over their wages. Although the work stoppages will only last a few hours, it is possible that a 24-hour warning strike will take place later this year. Indefinite strikes can also be called as a last resort, but only after members have been consulted again, IG Metall said.
The strikes pose new headaches for Europe’s biggest carmaker, which saw operating profit for the first nine months of the year fall by a fifth from the previous year as its flagship struggled. Car sales also fell due to particularly weak demand in China, where it is losing market share to Chinese electric vehicle brands.
A Volkswagen spokesperson said in a statement that the automaker had taken advance steps to minimize the impact of the strike on its factories and customers.
“Volkswagen respects the right of employees to participate in a warning strike,” the spokesperson added, noting that the company remains committed to a “constructive dialogue” to find a solution.
Volkswagen has said it may have to close factories in Germany for the first time in its 87-year history. In October, the company said it would have to cut employee wages by 10% to make it cost-competitive and secure the company’s future.
IG Metall said last month that workers would be willing to give up pay increases totaling 1.5 billion euros if company executives promise not to close factories and agree to sacrifice some of their bonuses.
The fourth round of negotiations will take place on December 9.
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