Automakers worldwide are doubling down on their efforts to restructure their workforce, but employees are unwilling to accept the changes sitting down. Volkswagen workers in Germany are going on strike to express their dissatisfaction with the changes occurring at the organization, with the union IG Metall leading the efforts.
The Volkswagen workers’ warning strikes began on Monday and employees from nine Volkswagen car and component plants across Germany are participating in the strike. This is expected to halt production at the plants for a few hours now that the “peace obligation” between the two parties has expired.
Image: Pexels
Volkswagen Workers in Germany Strike Against Large-Scale Change
The VW labor strikes have been initiated by workers as a way to protest against the planned layoffs announced at the organization. This is the first disruption to operations the trade union has initiated against Volkswagen’s domestic operations since 2018.
The workers and organization were under a peace agreement until Saturday, which prohibited workers from taking industrial action of any kind. Now that it has expired, workers at the company’s various factories are determined to protest the changes.
The Volkswagen workers’ warning strikes will only take place for a few hours before the workers return to their posts, but if negotiations don’t lead to fruitful results, we could expect to see 24-hour warning strikes later in the month. Indefinite VW labor strikes are not being discussed as of now, but this can be subject to change.
According to Reuters, thousands of workers are expected to gather at the automaker’s Wolfsburg headquarters, with strikes scheduled at the Hanover plant, where approximately 14,000 workers are employed. Additional demonstrations are expected at other components and auto plants in Emden, Brunswick, and Salzgitter.
What are the VW Labor Strikes About?
Much like Stellantis, Ford, and other automakers, Volkswagen has also seen a considerable dip in demand and sales this year. This has largely been attributed to the rise of the Chinese EV industry, but shifting consumer appetite has also played a significant role in the changes. VW is now faced with a plunging profit margin that requires fixing. Cutting down on production and reorganizing its workforce are key solutions identified by the company.
Unfortunately, this has meant layoffs for the workers. The company is said to be looking at closing down “at least” three factories, with plans to downsize the remaining plants as well. The domestic factory closures will be the company’s first such move in its 87-year history. The VW strike is also linked to the pay cuts that have been announced, which will dent worker pay by 10%.
The union and the organization have been in active negotiations over an alternate solution to the problem faced by Volkswagen, but the German industrial group has remained committed to the strategy that has been announced.
Volkswagen Is Prepared for the Workers’ Warning Strikes
In response to the Volkswagen workers strike in Germany, a spokesperson revealed that the company is prepared to respect its employees’ right to strike and will ensure that some degree of production continues at its plants.
In response to the possibility that VW might move some of its production to locations abroad or outsource it to other companies, Works Council Chairperson Daniela Cavallo stated that “this is the plan of Germany’s largest industrial group to start the sell-off in its home country.”
Last month, the IG Metall union proposed a plan that supported €1.5 billion in cost savings, which included the savings that would arise from workers agreeing to forgo their bonuses for 2025-26. The company dismissed the proposal, sure that such numbers could not be ascertained and would not buy enough time for the company to continue to remain competitive.
Labor reps and Volkswagen’s management have another round of discussions scheduled for December 9, 2024. The results of the negotiation will soon give us an idea of how matters are to proceed for both parties, but the union has reiterated that it will not accept a plan that does not provide a long-term strategy for every Volkswagen plant.
