Listen To Story Above

Volkswagen factory workers across Germany initiated strategic two-hour strikes at nine facilities on Monday, demonstrating their firm opposition to proposed pay reductions and facility shutdowns. The company claims these measures are essential to address the declining European automotive market.

At the company’s headquarters in Wolfsburg, employees gathered to protest management’s cost-reduction initiatives, which could result in unprecedented plant closures within Germany’s borders.

The automaker maintains it must reduce German operational costs to match those of its competitors and its own facilities in South America and Eastern Europe. In response, chief employee spokesperson Daniela Cavallo criticized management’s inability to develop compelling products and affordable electric vehicles.

“We demand that all make their contribution – management and the shareholder side as well,” Cavallo declared at the Wolfsburg demonstration, accompanied by employees’ drumming, whistling, and applause.

She emphasized that the upcoming negotiations would be pivotal, stating, “is likely to set the course – rapprochement or escalation. We are ready for both.”

These warning strikes, a typical negotiation strategy in Germany, coincide with labor agreement discussions following Sunday’s expiration of a mandatory peace period. IG Metall union officials indicate that future strike actions beyond Monday will be announced separately.

Volkswagen seeks a 10% wage reduction for its 120,000 German employees and claims facility downsizing is unavoidable. Employee representatives reveal the company is considering closing three German facilities.

IG Metall’s regional director in Lower Saxony, Thorsten Gröger, warned that these walkouts cannot be ignored, stating, “If necessary, this will be one of the toughest conflicts Volkswagen has ever seen.”

While specific plans remain undisclosed, Volkswagen faces multiple challenges: decreased European demand, rising costs, and intensifying Chinese competition. Volkswagen brand chief Thomas Schaefer told Welt am Sonntag that their facilities were built for a 16-million-vehicle European market, but current demand only reaches 14 million, resulting in a 500,000-vehicle annual shortfall for the company’s market share.

Previously, robust Chinese profits offset higher costs, but Schaefer acknowledged that changing market conditions demand immediate attention.

The strikes began in Zwickau and expanded to facilities in Braunschweig, Chemnitz, Dresden, Emden, Hanover, Kassel, and Salzgitter.

The next round of negotiations is scheduled for December 9.