Crisis in Germany: “This will be the toughest battle Volkswagen has ever known”

Volkswagen employees are being called to stop work from Monday in German factories to oppose the thousands of planned job cuts, the IG Metall union announced on Sunday. “If necessary, this will be the toughest collective bargaining battle Volkswagen has ever known,” union negotiator Thorsten Gröger warned in a statement at the end of the mandatory social dialogue period for 120,000 Volkswagen employees. brand in Germany.

On Friday, the manufacturer, which is preparing a drastic savings plan, rejected a union counter-proposal aimed at reducing costs without having to close factories in Germany, suggesting a toughening of social dialogue. “Warning strikes will begin on Monday in all factories,” indicates the negotiator, who holds management “responsible, at the negotiating table, for the duration and intensity of this confrontation.”

In a separate statement, Volkswagen said it “respects” the right of employees to participate in a warning strike” and said it believes in the continuation of “constructive dialogue” to “achieve a lasting and collectively supported solution”.

The company specifies that it has “anticipated targeted measures to secure emergency supplies” during the movement, in order to “limit as much as possible” its impact “on our customers, our partners and our industrial facilities”.

While Volkswagen announced in September that it was working on a program to restore its competitiveness, ongoing discussions between management and union officials, under the principle of co-management, have not made it possible to reach an agreement on restructuring measures. .

Employee representatives presented a counter-proposal in November including the suspension of bonuses, salary increases and reduced working hours, making it possible, according to them, to avoid factory closures in Germany and mass layoffs. But this offer was not considered viable by management.

Staff representatives say at least three Volkswagen factories are at risk of closing in Germany and tens of thousands of jobs could be lost, with remaining employees having to agree to pay cuts.

In the country, Volkswagen has ten car production sites and around 300,000 employees, including 120,000 for the VW brand, the most affected by the savings plan.

Flagship of the German automobile industry, Volkswagen is suffering from the slowdown in the new vehicle market, Chinese competition, battery models that are not attractive enough, and higher labor costs than its rivals, according to the experts.

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