Volkswagen workers, represented by the IG Metall union, have issued a strong warning of a potential strike in December after failing to reach an agreement on the company’s proposed cost-cutting measures. The union has set a deadline for December 1st, with plans to halt production at several of the company’s German plants if talks continue to fail.
The conflict centers around Volkswagen’s efforts to reduce costs, which include the closure of plants and massive layoffs. In response, workers have put forward a proposal to help the company avoid such drastic actions. They offered to accept temporary pay cuts, amounting to 1.5 billion euros over the next two years (2025 and 2026), in exchange for keeping the plants open and safeguarding jobs.
Despite the workers’ offer to help the company weather its financial troubles, the negotiations ended without a resolution, and tensions have escalated. Around 7,000 workers gathered at the company’s headquarters in Wolfsburg to demonstrate their support for the union’s stance.
Volkswagen’s financial difficulties have been compounded by a decrease in European demand and growing competition from Chinese electric vehicle manufacturers. The company is now facing the difficult prospect of closing plants, a move that would be unprecedented in its 87-year history.
With around 120,000 workers in Germany – nearly half of the company’s workforce – the outcome of these negotiations will have a significant impact on Volkswagen’s future operations and the livelihoods of its employees.
