Volkswagen’s woes mount as workers go on strike across Germany

By Hanna Ziady, CNN

London (CNN) — Tens of thousands of Volkswagen workers are taking part in strikes at plants across Germany Monday, marking the largest walkouts at the carmaker’s domestic operations since 2018.

The strikes, which are planned to last several hours, follow weeks of collective bargaining negotiations during which VW refused to rule out mass layoffs and plant closures in its home market — drastic measures the company says are necessary to prop up its fortunes amid competition from China and weaker European demand.

A so-called “peace obligation” between workers and the company, which prohibited industrial action, expired Saturday, allowing strikes to take place from Sunday at virtually all of Volkswagen’s German factories.

“If necessary, this will become the toughest wage dispute Volkswagen has ever seen,” Thorsten Groeger, the chief negotiator of labor union IG Metall, said in a statement Sunday. “How long and intense this dispute will be is Volkswagen’s responsibility at the negotiating table.”

“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 added.

Workers at nine of Volkswagen’s 10 plants in Germany are striking, according to IG Metall, with one site subject to a separate collective bargaining agreement excluded.

IG Metall said the walkouts were the first large-scale strikes Volkswagen had faced since 2018, when 50,000 workers idled plants over pay. Although the latest work stoppages will last only a few hours, it is possible that 24-hour warning strikes could be called later this year. Indefinite strikes could also be called as a last resort, but only after the union’s members have been consulted again.

The strikes represent a fresh headache for Europe’s largest automaker, which saw operating profit for the first nine months of the year tumble by a fifth, as its flagship brand struggled. Vehicle sales also slipped on particularly weak demand in China, where it is losing market share to Chinese electric vehicle brands.

A spokesperson for Volkswagen said in a statement Sunday that the carmaker had taken steps in advance to minimize the impact of the strikes on its factories and customers.

The spokesperson added that the company remains committed to “constructive dialogue” to find a solution.

Volkswagen has said it may need to close plants in Germany for the first time in its 87-year history. In October, it also said employee pay would need to be cut by 10% to make the company more cost-competitive and safeguard its future.

IG Metall said last month that workers would be prepared to forfeit pay increases totaling €1.5 billion ($1.6 billion) if executives at the company pledged not to close any factories and agreed to sacrifice a portion of their bonuses.

The fourth round of negotiations will take place on December 9.

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