Workers at nine Volkswagen facilities across Germany, including the flagship Wolfsburg plant, initiated two-hour rolling strikes on Monday in response to proposed cost-cutting measures that include pay cuts and factory closures. The action reflects growing discontent among the workforce as Europe's largest carmaker grapples with a shrinking auto market and rising competition from Chinese manufacturers.
Volkswagen management has proposed a 10% pay reduction for 120,000 German employees and hinted at shuttering three German factories. The company argues these measures are necessary to align costs with competitors and adapt to reduced demand in Europe, where annual car sales have fallen from 16 million to approximately 14 million.
The strikes have disrupted production of popular models such as the Golf, with union sources reporting that the Wolfsburg walkout alone halted assembly of several hundred vehicles.
IG Metall, Germany's industrial union, organized the strikes as part of ongoing negotiations for a new labor agreement following the expiration of a mandatory peace period. Chief employee representative Daniela Cavallo criticized management for shifting the burden of cost reductions onto workers, accusing them of failing to develop appealing products or an affordable entry-level electric vehicle.
"We demand contributions from all sides – management and shareholders included," Cavallo said during a rally at Wolfsburg, as workers drummed and clapped in solidarity.
Thorsten Groger, IG Metall's regional leader in Lower Saxony, warned that the walkouts could escalate if Volkswagen does not negotiate in good faith. "This could become one of the toughest conflicts Volkswagen has ever faced," Groger said.
Volkswagen acknowledged the workers' right to strike and has implemented measures to maintain essential customer supplies during the disruption. However, the company maintains that cost reductions are unavoidable, citing a surplus of factory capacity and rising operational expenses.
Volkswagen brand head Thomas Schaefer emphasized the need for urgent action, noting that the company can no longer rely on profits from its Chinese market to offset European inefficiencies.
The strikes, which began at Zwickau and extended to other facilities, are expected to continue if negotiations remain stalled. The next round of talks is scheduled for December 9.
