This Monday, representatives of the German car company VW and employee representatives will meet for what is now their fourth round of collective bargaining. There is still no agreement in the dispute over pay cuts, factory closures and layoffs. The union now wants to increase the pressure again with a second national warning strike, immediately on the day of the negotiations.
Unlike the first strike, in which around 100,000 workers took part, this time work would have to be stopped for not just two hours per shift, but four hours. Nine out of ten German VW factories have been affected again, including all locations except Osnabrück. The VW factory there is not covered by the VW own tariff, which is currently being fought over.
Impact of the strikes so far “low”
After the first warning, the company only spoke of minor production losses. “The effects were limited,” says a spokesperson. During the warning strikes, production was stopped everywhere. However, they were then able to start it up again without any major problems. In view of the second warning strike, VW has also indicated that it wants to keep the impact as low as possible and has taken targeted measures to secure emergency supplies.
But as industry expert Frank Schwope of the Hannover College for Medium-Sized Enterprises warned: “A prolonged, escalating labor dispute would certainly harm Volkswagen and could also damage its public and political image.”
CEO: “VW Group needs restructuring”
What complicates the negotiations: At the same time, there is also a battle for job security, which VW has canceled after more than thirty years. Factory closures and layoffs are on the agenda. VW also wants to hire fewer interns and return the pay of temporary workers, who previously received an allowance from the car manufacturer, to the normal level of temporary work.
According to the works council, at least three factories and tens of thousands of jobs are at risk. VW justifies the cuts with high costs and low occupancy rates. “The VW Group needs restructuring,” CEO Oliver Blume said during the factory meeting last Wednesday, according to participants. If no agreement is reached in the collective bargaining round today, the union threatens to expand industrial action.
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.
