Volkswagen workers in Germany strike again as talks drag on
Daniela Cavallo, chairwoman of the general works council of Volkswagen speaks during a warning strike by the union IG Metall, in front of the headquarters of carmaker Volkswagen in Wolfsburg, Germany, Monday, Dec. 9, 2024. (AP Photo/Martin Meissner, Pool)
Wolfsburg, Germany — Tens of thousands of Volkswagen workers walked out on Monday in the second round of strikes in an escalating conflict between unions and management over the German carmaker’s drastic savings plans.
READ: Tens of thousands strike at Volkswagen’s Germany plants
The situation at the group’s eponymous Volkswagen brand was “serious” according to executives, with drastic action needed to put the company on a sustainable footing.
The auto manufacturer has struggled with the switch to electric vehicles as it battles high costs at home and rising competition from Chinese carmakers.
According to unions, management has laid out plans to close at least three plants in Germany, where the Volkswagen brand employs some 120,000 people.
Worker representatives have vehemently opposed the plan to close sites in Germany and threatened the group with massive industrial action.
‘Mistakes’
The situation at Volkswagen was “a little embarrassing”, worker Per Rose, 61, told AFP in Wolfsburg.
In Rose’s view, VW management had failed to anticipate the rise of Chinese competition and “did not take countermeasures”.
Executives had made “a lot of mistakes that the little man pays the price for”, said Sabine Tempe, 60, who works for a Volkswagen subsidiary.
Tempe’s two children, who both work at the auto manufacturer, “are afraid that they might be laid off next year because it was said that many jobs would also be eliminated”, she said.
During talks, worker representatives have presented a plan they said would save the carmaker 1.5 billion euros ($1.6 billion) and avoid plant closures.
But management have rejected the proposals, saying they did not add up to a “sustainable solution”.
“We need to find further potential (for savings)… this is the only way we can finance our investments,” Volkswagen negotiator Arne Meiswinkel said ahead of the talks Monday.
Volkswagen’s “insistence on maximalist positions” had “destroyed trust” among workers, IG Metall negotiator Thorsten Groeger said before the meeting.
He added that if VW showed a willingness to compromise, it would be “possible that we can find solutions before Christmas” in just over two weeks.
Pushback against Volkswagen’s plans has also come from Germany’s political leadership.
“Closing factories would not be the right way,” Chancellor Olaf Scholz told the Funke media group over the weekend.
“Precisely because the bad decisions of management have contributed to the situation, that would not be ok,” said the Social Democrat, who is battling to save his job in elections slated for February.
