Nationwide warning strikes at Volkswagen! More than 10,000 employees at almost all German locations temporarily stopped work on Monday due to the company’s billion-dollar savings plans.
Thousands marched through the main factory in Wolfsburg and gathered for a rally right in front of the management building. ‘Ready to strike! Nationwide!” they chanted. With the warning strike, the union wants to temporarily stop production in nine out of ten German VW factories.
Factory closures and layoffs are on the agenda
With the strike, IG Metall is defending itself against billions in cuts at Europe’s largest car manufacturer. VW is demanding a ten percent pay cut from employees due to the company’s difficult situation. Factory closures and layoffs for operational reasons are also on the table. IG Metall wants to prevent this and instead advocates a future for all locations – without factory closures and layoffs. After three failed rounds of collective bargaining, both sides will meet for the next negotiations on December 9.
In Zwickau and Emden, workers gathered in front of the factory gate on Monday; in Braunschweig, more than 1,000 employees marched in a demonstration through the city.
IG Metall: “This is just a warning”
The strike at almost all locations affects Volkswagen, says IG Metall negotiator Thorsten Gröger in Wolfsburg. “But that’s just a warning!” If Volkswagen continues to adhere to its maximum requirements, there is a risk of further escalation.
The next round of negotiations in a week’s time will determine the course, according to works council leader Daniela Cavallo. If necessary, we will conduct a labor dispute that suits Volkswagen.
In Zwickau, IG Metall’s local district manager Dirk Schulze declared: “We will fight bitterly for every job.” With its cutback announcement three months ago, the board “set the Volkswagen store on fire.” Now this place is ‘on fire’.
There is a risk of further escalation
The warning signals each last approximately two hours and must then be repeated in each shift. IG Metall is increasing the pressure in the dispute over wage cuts, factory closures and job losses. “We do not want this conflict, but we will fight it as long as the board only focuses on cuts and layoffs instead of prospects,” said Gröger. “If necessary, this will be one of the toughest conflicts Volkswagen has ever seen.”
Volkswagen initially provided no information about possible production disruptions. The goal is to keep the impact as low as possible, a spokesperson said. The company has therefore taken targeted measures to secure emergency supplies.
The conflict concerns the pay of approximately 120,000 employees at Volkswagen AG’s factories, where a separate corporate rate applies. In addition, more than 10,000 employees work at VW Sachsen, for whom coordination with the company wage agreement has been agreed in 2021.
Union proposal rejected
VW had previously stated that it respected workers’ right to hold warning strikes and continued to rely on an amicable settlement with workers. However, the group was tough on the matter: VW had on Friday only rejected a counter-concept from IG Metall and the works council for savings without layoffs and site closures as inadequate.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
