Volkswagen workers in Germany have gone on strike today in the largest industrial action taken against the company since 2018. The union IG Metall, which represents about 120,000 VW workers, voted to approve the strike on November 22, describing the situation as “the toughest collective bargaining battle Volkswagen has ever seen.”
IG Metall’s members are striking in response to VW’s plans to cut its European manufacturing costs, which are dragging on the company at the same time as the Chinese market has become more difficult due to domestic competition, as well as a softening of global demand for electric vehicles.
VW’s response to these tough times has been to propose a 10 percent pay cut, thousands of layoffs, and the closure of three German factories—the first time such a thing will have happened in the company’s 87-year history.
IG Metall, together with VW’s works councils—which have an unusually large amount of power compared to workers even at other German automakers—had proposed $1.6 billion in cost savings. This proposal included no bonuses for staff or management and forwent pay raises in favor of shorter working hours at some plants. But VW management rejected the suggestion, saying that it would not result in long-term financial relief.
“Volkswagen has set fire to our collective agreements and instead of extinguishing this fire in three collective bargaining sessions, the management board is throwing open barrels of petrol into it,” said IG Metall spokesperson Thorsten Groeger.
VW says it respects the rights of employees who take part in the warning strikes. Ars has reached out to VW for comment and will update this article if we hear back.
