Volkswagen Faces Strike Threat as Workers Reject Cost-Cutting Proposal

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Volkswagen workers, represented by the IG Metall union, are preparing for a potential strike in December after talks with the company over significant cost-cutting measures collapsed. The union has issued an ultimatum, with industrial action planned for December 1st if an agreement is not reached.

The negotiations, which took place over several rounds, aimed to address Volkswagen’s financial difficulties, including plans to cut costs through plant closures and massive layoffs. In a bid to avoid such drastic measures, workers proposed a solution where they would accept temporary pay cuts to help the company stay afloat. Specifically, the workers offered to contribute approximately 1.5 billion euros through wage reductions for two years (2025 and 2026), which would be used to prevent plant closures and protect jobs.

Around 7,000 workers protested at the company’s headquarters in Wolfsburg during the latest round of talks, making it clear that the union is serious about its demands. Thorsten Groger, an IG Metall official, emphasized that the strike would be on a scale large enough to show Volkswagen that workers are committed to their cause.

Volkswagen, along with other European car manufacturers, has been struggling with falling demand in Europe and heightened competition from Chinese electric vehicle makers. The company’s financial troubles have led to proposals for domestic plant closures, a move that would be unprecedented in its 87-year history.

With around 120,000 workers in Germany – nearly half of Volkswagen’s workforce in the country – the outcome of this dispute could have significant implications for the company’s future and operations.