Volkswagen Warning Strike Across Germany on the 2nd... "Opposing Wage Cuts and Restructuring"

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Workers at the German automaker Volkswagen will launch a warning strike across Germany on the 2nd (local time) in opposition to wage cuts and restructuring.

Thorsten Gr?ger, the chief negotiator of the industrial union IG Metall (Metalworkers' Union), stated on the 1st, "The Volkswagen management is not putting out the fire with three rounds of collective bargaining but rather throwing gasoline on it," adding, "Warning strikes will begin at all factories in Germany starting from the 2nd." He further added, "How long and intense this confrontation will be entirely depends on the management."

Volkswagen has demanded a 10% wage cut to reduce costs and improve profitability due to high domestic manufacturing costs, delays in transitioning to electric vehicles, and fierce competition in its key market, China. Additionally, the company plans to close at least three of its ten factories in Germany and lay off thousands of workers. German media estimate that depending on the scale of factory closures, up to 30,000 of the 120,000 employees in Germany could lose their jobs. Volkswagen has never before closed a factory in Germany.

Although collective bargaining between the company and IG Metall continues, AFP reports that they have failed to narrow their differences. The union proposed measures last week that could save 1.5 billion euros (approximately 2.2 trillion won), including forgoing bonuses in 2025 and 2026, but the company rejected the proposal, saying, "While it may help in the short term, it will not lead to long-term financial structure improvement."

A Volkswagen spokesperson said the company has been preparing for the possibility of a strike and that "the impact of the warning strike on customers, partners, and industrial plants will be minimized as much as possible." The spokesperson also stated that the company respects the rights of employees participating in the short-term strike and will engage in constructive dialogue with the union to reach a sustainable agreement.

Both sides are scheduled to meet again on the 9th to continue negotiations. The union has stated that it will reject all negotiations unless the company presents a long-term plan for all factories in Germany. This strike is expected to be the first large-scale strike at Volkswagen's German operations since 2018, when about 50,000 people participated.

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