Volkswagen Under Strike Again as Pay Cut and Plant Closure Proposals Resume
Volkswagen (VW) employees in Germany held their second major strike just yesterday on December 9th, escalating tensions over the company’s cost-cutting measures. Workers across nine factories participated in the walkout, with a record 68,000 at Wolfsburg, 12,500 in Kassel, and 9,000 each in Zwickau and Hanover. The strikes have been organized by IG Metall, Germany’s largest industrial union, to oppose wage cuts, layoffs, and the planned closure of factories.
Volkswagen has proposed a 10% pay cut and the closure of at least three of its ten German factories as part of its efforts to address financial challenges, including mounting costs and competitive pressures from China, especially in the electric vehicle (EV) market. CEO Oliver Blume has defended these actions as vital to securing VW’s future, but unions accuse management of prioritizing profit over people.
Thorsten Groeger, a lead negotiator for IG Metall, criticized the company’s timing, stating, "It borders on mockery when Oliver Blume stands in front of the workforce and wishes them a Merry Christmas, while at the same time, the VW board would prefer to put letters of termination under the Christmas tree for the employees." The union has warned of more drastic strikes if negotiations fail, including 24-hour and indefinite actions after the holidays.
The strikes have already disrupted production, with the latest walkout doubling the duration of earlier protests (2 hours). This has exacerbated delays in vehicle output, costing VW hundreds of cars per shift. The automaker faces a challenging road ahead as it struggles to balance cost reductions with worker satisfaction and market competitiveness.
The fifth round of talks between VW and IG Metall is scheduled for December 16 and 17. Both sides express cautious optimism, with Groeger acknowledging a “more constructive tone” in recent negotiations. However, with the union being firm about their demands and VW’s financial situation worsening, the stakes remain high.
Reuters quoted Groeger saying that “The brand VW is under threat of becoming damaged by the behaviour of the board and the share price has been thrown to the bottom of the basement. That is the board’s responsibility,”
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