The IG Metall labour union has warned of a potential strike at Volkswagen in December after a third round of talks with the company over severe cost-cutting measures ended without an agreement. The union’s ultimatum is set for December 1st, with workers threatening to shut down production at several German plants.
The negotiations, which were aimed at addressing Volkswagen’s financial struggles, saw workers offering to accept wage cuts to help the company avoid mass layoffs and keep its plants operational. Specifically, they proposed a fund of about 1.5 billion euros, generated by wage reductions for two years (2025 and 2026). This would be in exchange for the company not closing factories or laying off workers on a large scale.
IG Metall official Thorsten Groger made it clear that the strike, if it proceeds, will be significant and will show Volkswagen that workers are serious in their demands. Around 7,000 workers rallied at the company’s headquarters in Wolfsburg, pushing for an agreement that balances financial sustainability for Volkswagen with the protection of jobs.
Volkswagen, facing a decline in European demand and stiff competition from Chinese electric vehicle makers, has been looking for ways to cut costs. The company’s current financial troubles, which include proposed plant closures, are unprecedented, as Volkswagen has never closed a domestic factory in its 87-year history.
With the union representing about 120,000 workers in Germany, nearly half of Volkswagen’s workforce in the country, the outcome of this dispute could have significant implications for the carmaker’s operations and future.