Several thousand Volkswagen workers joined strikes at plants across Germany on Monday. This marked the largest walkout seen at the carmaker’s domestic operations since 2018. These strikes are planned to last several hours and are taking place after bargaining discussions failed.
The German auto giant has been involved in negotiations with workers, during which the firm refused to rule out mass job cuts and plant shut downs in the home country. The carmaker argued that these measures are needed to face heavy competition from China and muted European demand, reported CNN.
The ‘peace obligation’ between the firm and employees expired on Saturday and allowed strikes to occur from Sunday at practically all of the company’s factories in Germany. This obligation barred industrial action. Issuing a statement on Sunday, Thorsten Groeger, the chief negotiator of labour union, IG Metall, said, “If necessary, this will become the toughest wage dispute Volkswagen has ever seen. How long and intense this dispute will be is Volkswagen’s responsibility at the negotiating table. Volkswagen has set our collective bargaining agreements on fire and, instead of extinguishing this fire during three rounds of negotiations, the management board keeps throwing open barrels of gasoline onto it.”
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The union informed that workers at nine out of 10 Volkswagen plants in Germany are involved in the strike, with one site subject to a separate collective bargaining agreement excluded.
This strike adds on to the pile of troubles for the company which clocked a fall in its operating profit by a fifth for the first nine months of the year. A spokesperson for the carmaker on Sunday said that it has taken measures in advance to help minimise the impact of the strikes on the factories and customers. The next round of negotiations will take place on December 9, 2024.