Workers at nine Volkswagen plants across Germany began two-hour strikes on Monday, halting production lines as labor and management clash over the carmaker’s future.
The strikes come amid ongoing wage negotiations, with Volkswagen demanding a 10% wage cut as part of efforts to reduce costs. Workers on both morning and evening shifts participated in the strikes, leaving the carmaker’s operations disrupted, according to Reuters.
Volkswagen has warned it may close plants in Germany for the first time in its 87-year history to address weak demand, high production costs, and increasing competition from Chinese carmakers.
The company also faces challenges from the slow transition to electric vehicles.
At Volkswagen’s main plant in Wolfsburg, which employs 70,000 people, the strike halted the production of several hundred cars, including the popular Golf model. Other plants affected include Hanover and Zwickau, the latter of which is Volkswagen’s EV-only facility.
The strike is part of a broader conflict between Volkswagen and its workers, who are protesting the company’s cost-cutting measures, which include potential plant closures and layoffs.
IG Metall union negotiator Thorsten Groeger warned that the confrontation could escalate into longer stoppages if a deal is not reached by the next round of wage talks on December 9.
Volkswagen’s works council head, Daniela Cavallo, has also raised concerns that the company’s shareholders, including the Porsche and Piech families, might need to make sacrifices, possibly affecting their annual dividends.
The strikes have added to the pressure on Volkswagen, already facing declining deliveries and falling profits.
Union leaders condemned management for expecting workers to pay the price for past corporate mistakes, including the diesel emissions scandal and a failure to keep up with global competitors.
Workers expressed frustration over management’s high salaries while demanding wage cuts and job cuts from their staff.
Volkswagen said it respected the workers’ right to strike but is taking measures to minimize the impact on customers.
The company dismissed a union proposal to save 1.5 billion euros by delaying bonuses, calling it unrealistic. As the negotiations continue, tensions are rising, and further strikes could escalate unless a compromise is reached.
