Warning strike announced: Volkswagen faces strike

Volkswagen, Europe's largest carmaker, is facing a major labor dispute. IG Metall plans to stop work at all locations on Monday. The conflict over wage cuts and factory closures has reached a fever pitch.

IG Metall negotiator Thorsten Gröger announced that production at all plants will be “temporarily stopped”. He initially gave no details. But Groeger spoke of “a warning shot that companies can't ignore.” With the strike, unions hope to increase pressure on the dispute over billions of dollars in cuts.

Frustration among professionals

IG Metall's previous actions in Wolfsburg and Zwickau marked the end of Volkswagen's peace obligations and ushered in the hot warning strike phase. The peace obligation not to allow strikes expired on Sunday night.

“The frustration in the workforce is huge,” said General Works Council leader Daniela Cavallo. With the possibility of a warning strike, there is now an outlet to “vent”. She therefore expected a good response to the upcoming action.

Volkswagen initially did not provide any information about possible production losses. A spokesman said the aim was to minimize the impact. To this end, the company has taken targeted measures to ensure emergency supply.

Volkswagen respects the right of its employees to participate in a warning strike. The company continues to rely on constructive dialogue with employees to reach solutions.

The company requires a 10% salary cut

The conflict involves the wages of some 120,000 employees at Volkswagen plants, which apply their own internal tariffs. In addition, Volkswagen Saxony has more than 10,000 employees who have agreed on a company wage agreement for 2021.

Volkswagen has so far refused to raise wages, instead asking for a 10 percent pay cut. Factory closures and layoffs are also on the table. The employment security system that had excluded compulsory redundancies for more than 30 years was ended. It may also be terminated from July 2025.

According to the works council, at least three factories and tens of thousands of jobs are at risk. Volkswagen cited high costs and low utilization to justify the cost cuts. Volkswagen has once again had to step up its savings efforts amid weak demand. According to the works council, the group hopes to save approximately 5 billion euros in additional.

IG Metall's future plans rejected

On Friday, Volkswagen rejected proposals from IG Metall and its works council to reduce costs. With their concept, they hope to prevent factory closures and layoffs for operational reasons.

IG Metall and the Works Council proposed not to pay potential wage increases for the time being, but instead to deposit them into a fund for flexible reductions in working hours in the future. They pledged to cut costs for the group by 1.5 billion euros. In return, Volkswagen should avoid plant closures and layoffs for operational reasons.

Volkswagen insists on closing factories

Brand boss Thomas Schäfer confirmed the tightening measures in an interview: “We have to reduce production capacity and adapt to the new reality.” In addition to vehicle factories, it also includes parts factories. Asked whether VW could avoid plant closures, Schaeffer said: “We currently don't think that will happen.”

Collective bargaining is scheduled to continue on December 9. (Sudan Development Authority/Department of Political Affairs/New Zealand National Alliance)

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