Thousands of Volkswagen employees staged a four-hour strike at nine German plants as the company and unions entered another round of negotiations over cost-cutting measures. The dispute centers on Volkswagen’s plans to cut €10 billion through reduced pay, job losses, and potential plant closures, which the company says are necessary to maintain competitiveness amid weak European demand and intense competition in China.
Unions have proposed cost-saving measures, including reducing bonuses and dividends, which they claim would save €1.5 billion. However, Volkswagen rejected the plan, calling it inadequate. “We need further cost reductions to ensure a future-proof product portfolio and long-term competitiveness,” said chief negotiator Arne Meiswinkel.
Escalating Tensions Amid Strike Actions
Union leader Daniela Cavallo has called for shared responsibility from management and shareholders, accusing Volkswagen of placing too much of the burden on workers. Speaking at a recent rally attended by nearly 100,000 employees in Wolfsburg, Cavallo warned, “We are prepared for either rapprochement or escalation.”
German Chancellor Olaf Scholz has urged Volkswagen to reconsider plant closures, emphasizing the need for collaborative discussions. Meanwhile, unions have threatened more strikes in 2025 if an agreement isn’t reached.
As tensions rise, the outcome of the current negotiations will likely set the tone for the company’s future labor relations and its efforts to navigate economic challenges.