Germany's largest industrial union, IG Metall, has announced potential strikes by Volkswagen (VWAGY, Financial) workers due to escalating conflicts over layoffs and factory closures. The union indicated that strikes could begin in early December, with the current no-strike agreement expiring on November 30. Sources suggest that warning strikes might start as early as Monday, marking Volkswagen's first large-scale strike in Germany since 2018.
Volkswagen has proposed a 10% pay cut to counter competition from Chinese rivals and declining European demand, aiming to reduce costs and protect market share. The company has also threatened to close factories in Germany for the first time in its 87-year history. Labor representatives and management are set to negotiate a new labor agreement on December 9, with the union opposing proposals that do not include long-term plans for each factory.
Strikes could escalate if no agreement is reached, potentially impacting Volkswagen's production amid declining deliveries and profits. IG Metall emphasizes that the duration and intensity of the conflict depend on Volkswagen's negotiation stance. The union suggests measures like reduced working hours and bonus waivers to avoid layoffs, but management has not ruled out factory closures.
