Tens of thousands of Volkswagen workers are set to strike Monday at plants throughout Germany, according to the labor union IG Metall. This marks the largest series of walkouts at the carmaker’s domestic operations since 2018.
The strikes, expected to last several hours, follow weeks of collective bargaining negotiations. VW has not ruled out mass layoffs or potential plant closures in Germany—drastic moves the company deems necessary to maintain its competitive edge amid pressure from China and declining demand in Europe.
A “peace obligation,” which previously prevented industrial action, expired Saturday, paving the way for strikes at nearly all of Volkswagen’s factories in Germany starting Sunday.
IG Metall’s chief negotiator, Thorsten Groeger, stated, “If necessary, this will become the toughest wage dispute Volkswagen has ever seen. How long and intense this dispute will be is Volkswagen’s responsibility at the negotiating table.” He criticized management for not addressing the issues, saying, “Volkswagen has set our collective bargaining agreements on fire, and instead of extinguishing this fire, the management board keeps throwing gasoline onto it.”
These strikes are the first large-scale actions Volkswagen has faced since 2018, when 50,000 workers halted production over pay disputes. While the upcoming walkouts are brief, IG Metall has indicated that longer warning strikes could be initiated later this year, and indefinite strikes may be considered as a last resort after consulting members.
The strikes add to the challenges facing Europe’s largest automaker, which reported a 20% drop in operating profit for the first nine months of the year. The company has struggled with vehicle sales, particularly in China, where it is losing ground to local electric vehicle brands.
A Volkswagen spokesperson acknowledged the workers’ right to strike and emphasized the company’s commitment to “constructive dialogue” to reach a resolution. The spokesperson also noted that steps had been taken to minimize the strike’s impact on production and customers.
Volkswagen has indicated that it may need to close plants in Germany for the first time in its 87-year history. In October, the company announced a potential 10% pay cut for employees to enhance competitiveness and secure its future.
IG Metall revealed last month that workers are willing to forgo €1.5 billion ($1.6 billion) in pay increases if company executives agree not to close any factories and to sacrifice part of their bonuses.
The fourth round of negotiations is scheduled for December 9.
