Tens of thousands of Volkswagen workers in Germany are set to embark on strike on Monday in what will be the largest walkouts at the company’s domestic plants since 2018.
Organized by the IG Metall labour union, the strikes will last several hours and follow weeks of stalled negotiations, according to CNN.
The dispute stems from Volkswagen’s refusal to rule out mass layoffs and potential plant closures, measures it says are necessary to remain competitive against Chinese rivals and address weakening demand in Europe.
The strikes highlight rising tensions over job security as the company navigates economic and industry pressures.
The expiration of a “peace obligation” between Volkswagen and its workers on Saturday has cleared the way for industrial action.
This agreement had previously prohibited strikes but now allows workers to stage walkouts, which began Sunday across nearly all of Volkswagen’s German factories.
“If necessary, this will become the toughest wage dispute Volkswagen has ever seen,” IG Metall’s chief negotiator, Thorsten Groeger said in a statement Sunday. “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,” he added.
According to IG Metall, the upcoming walkouts will be Volkswagen’s first large-scale strikes since 2018, when 50,000 workers shut down plants over pay disputes. While the current stoppages are expected to last only a few hours, the union has warned that 24-hour warning strikes could follow later this year if negotiations fail to progress.
IG Metall stated that indefinite strikes could be called as a last resort if negotiations fail, but only after consulting members again to secure their approval.
The strikes add to the challenges facing Europe’s largest automaker, as Volkswagen’s operating profit for the first nine months of the year fell by 20% compared to the previous year. The decline was driven by struggles with its flagship brand and slipping vehicle sales, particularly in China, where it is losing market share to local electric vehicle manufacturers.
A Volkswagen spokesperson stated that the company had implemented measures in advance to reduce the impact of the strike on its factories and customers.
“Volkswagen respects the right of employees to participate in a warning strike,” the spokesperson added, noting that the company remains committed to “constructive dialogue” to find a solution.
