Richard Parks Thousands of Volkswagen employees participated in strikes across nine German plants, as unions and company executives resumed negotiations over cost-cutting measures. The automaker plans to save €10 billion by reducing pay, slashing jobs, and potentially closing plants, citing weak European demand and fierce competition in China.
Unions countered with a proposal to save €1.5 billion through reduced bonuses and lower dividend payouts, but Volkswagen rejected the plan as insufficient. “We need deeper cost reductions to secure long-term competitiveness,” said Volkswagen’s chief negotiator Arne Meiswinkel.
Union Demands and Political Pressure
Union leader Daniela Cavallo criticized the company for placing the burden solely on workers, calling for contributions from management and shareholders. Speaking at a recent rally in Wolfsburg, Cavallo warned, “We are ready for both dialogue and escalation.”
German Chancellor Olaf Scholz has joined the debate, urging Volkswagen to avoid plant closures. Meanwhile, unions have threatened strikes extending into 2025 if no agreement is reached.
The ongoing standoff highlights the stakes for Volkswagen as it balances cost-saving efforts with maintaining workforce morale and stability in a challenging economic climate.