Thousands of Volkswagen (VW) employees in Germany initiated a warning strike on December 2, 2024, in response to the company's plans to cut wages and close factories. The strike began at 9:30 AM in Zwickau, with workers halting operations for two hours. By 10:00 AM, employees from the company's headquarters in Wolfsburg and other facilities joined the action. According to the IG Metall union, the protest involves nine out of ten VW plants in Germany, impacting tens of thousands of workers.
Thorsten Gröger, leading the negotiations for IG Metall, stated that this could become the toughest wage dispute Volkswagen has ever faced. The union is opposing multi-billion euro cuts proposed by the automaker, which aims to reduce salaries by 10% for 120,000 employees. Additionally, plans to close three factories in Germany and lay off workers have been announced.
Gröger accused the company of undermining collective agreements, emphasizing that the conflict was instigated by Volkswagen. He asserted that while the union did not seek this confrontation, they are prepared to engage fully if necessary. Negotiations between employee representatives and company officials are scheduled to continue on December 9.
This situation reflects broader challenges facing the German economy, particularly its automotive sector. Declining orders have adversely affected German exports, a key economic pillar. Volkswagen is also experiencing a drop in demand in China, where locally produced electric vehicles are gaining popularity. Concerns about impending EU tariffs on Chinese electric vehicles further complicate matters.
In October, Volkswagen reported a 64% decline in third-quarter profits, with other German car manufacturers like BMW and Mercedes-Benz also facing significant losses.