Warning strike at VW
“Furious and stunned”
December 9, 2024 – 8:49 p.mReading time: 3 min.
How is Europe’s largest car manufacturer getting out of the crisis? Management is planning wage cuts of ten percent. For the fourth round of collective bargaining,IG Metall is taking to the streets at new locations.
Applause for the IG Metall leadership, shouts of “boos” in the direction of the boardroom at Volkswagen: Accompanied by warning strikes and loud protests, the fourth round of collective bargaining has begun at VW.
Employees in the car manufacturer’s plants temporarily stopped work and, according to IG Metall, tens of thousands came to the central protest rally directly at the executive board building.The collective bargaining talks began considerably late in the afternoon in the Volkswagen Arena. They could drag on until late evening.
Because of the company’s difficult situation, VW is demanding a ten percent pay cut from its employees. plant closures and redundancies are also on the table because Volkswagen sells to few cars. Though, IG Metall is demanding the preservation of all locations and an employment guarantee for the approximately 130,000 employees. The union rejects wage cuts.
IG Metall chairwoman Christiane Benner said she was “pissed off and stunned by the board’s actions” at the rally. “Rather of bright solutions, they offer clear-cutting and job cuts.” The employees are not to blame for the crisis,but rather many wrong decisions by management. And these problems cannot be solved with plant closures, layoffs and wage cuts, says Benner.
the employees of the main plant, who went on warning strike in the morning, acknowledged the company’s austerity plans with loud whistles and shouts in the direction of the executive board building directly behind the stage. They chanted: “Ready to strike! Nationwide!”
Nine out of ten locations on strike
The protest was accompanied by the second nationwide warning strike at nine of the ten German VW locations. In addition to Wolfsburg, the factories in Zwickau, Hanover, Emden, Kassel-Baunatal, Braunschweig, Salzgitter and Chemnitz as well as the “Gläserne Manufaktur” in Dresden were also affected.
Unlike the first strike last Monday, work should not just stop for two hours in each shift, but for four hours.According to IG Metall, 38,000 employees in Wolfsburg alone took part in the strike by the early afternoon. By the afternoon, the union had 68,000 participants at all nine locations combined.
IG Metall had offered not to pay out a possible wage increase for the time being, but to put it into a future fund. she promised the group a cost reduction of 1.5 billion euros. In return, VW should refrain from plant closures and redundancies for operational reasons.
VW negotiator Arne Meiswinkel reaffirmed the group’s willingness to save at the start of the fourth round of collective bargaining. “We continue to need cost relief that can be implemented in the short term and is lasting.” The concept presented by the union in November is “not yet” sufficient here. “That’s why we have to find further potential today.”
The rejection of the concept was less harsh than before. VW had previously stated that the IG Metall offer was “far from” sufficient and did not bring any lasting relief.
Both sides had stated several times in advance that they would ideally like to reach an agreement before Christmas. If there is now a rapprochement,this would still be possible,said gröger. IG metall is then ready for further negotiations this week and next. Or else, he threatened to expand the industrial action. “Then in 2025 there will only be one answer to the austerity hammer: the strike hammer!”
Last monday, according to IG Metall, almost 100,000 employees went on a warning strike for two hours. The same nine locations where a strike was called again were affected. Only the factory in Osnabrück, which fears for its future, is not covered by the company collective agreement that is currently being fought over.
what are the potential consequences of the warning strikes for Volkswagen’s operations and workforce?
Interview between Time.news Editor and Dr. Anna Meyer,Labor Relations Expert
Time.news Editor: Good afternoon, Dr. Meyer. Thanks for joining us today. the recent warning strikes at Volkswagen (VW) have caught meaningful attention. Can you give us an overview of the current situation at VW and the reasons behind these strikes?
Dr. Anna Meyer: Good afternoon! Yes, the situation at VW is quite serious. The company is facing considerable financial difficulties, which has led management to propose a ten percent wage cut for employees. This has obviously sparked outrage among workers, leading them to protest and organize warning strikes.What’s alarming is that VW is also considering plant closures and layoffs, affecting around 130,000 employees.
Time.news editor: IG Metall, the union representing the workers, has taken a strong stance against these measures. Can you elaborate on their response during the protests?
Dr. Anna Meyer: Absolutely. IG Metall’s chairwoman,Christiane Benner,expressed her frustration at the rally,accusing the management of making poor decisions that have led to this crisis. She emphasized that the workers shouldn’t bear the burden of the company’s mistakes through wage cuts and job losses. The union is demanding job security and a halt to any austerity plans—a clear message that they will not accept management’s approach without a fight.
Time.news Editor: The protests seem to indicate significant employee support for their union. how crucial is this solidarity among the workforce?
Dr. Anna Meyer: Solidarity is the backbone of any triumphant labor movement. The fact that tens of thousands of workers participated in the protests shows a collective acknowledgment of their plight. When employees chant “Ready to strike! Nationwide,” it signals a willingness to escalate their actions if necessary. This unity will be essential in negotiations with VW’s management.
Time.news Editor: Last week,VW’s management and IG Metall began collective bargaining discussions as tensions rose. How might these discussions unfold, given the current climate?
Dr. Anna Meyer: These discussions will likely be contentious. The management’s proposals of wage cuts and layoffs are not well received, and negotiations could drag on.Both sides will need to find common ground—whether through exploring choice cost-saving measures or ensuring job security while stabilizing VW’s financial health. However, if management remains inflexible, we might see an escalation of strikes, which can harm both the company’s image and its workforce morale.
Time.news Editor: Many are questioning whether wage cuts and job losses are truly the best solutions for VW’s problems. What alternative strategies could the management consider?
Dr. Anna Meyer: This is a crucial point.Instead of drastic measures like layoffs, VW could consider investing in new technologies or exploring new markets to increase sales. Collaborating with employees on innovative solutions or restructuring may foster a more engaged workforce while steering the company toward profitability. The focus shoudl be on sustainable growth, not just cutting costs.
Time.news Editor: It’s evident that this situation will be closely monitored by both the public and industry experts. As we wrap up, what do you think the future holds for VW and its employees?
Dr.Anna Meyer: The outcome largely depends on the willingness of VW’s management to engage constructively with IG Metall and the employees. If both sides approach negotiations with an open mind, there’s potential for a resolution that could stabilize the company while protecting jobs. However, if management remains rigid, we could see prolonged strikes and greater unrest within the workforce. Only time will tell how this unfolds, but change is essential for VW to emerge from its current crisis.
Time.news Editor: Thank you, Dr.Meyer, for your insights into this developing story. It will be interesting to see how this situation evolves in the coming weeks.
Dr. Anna Meyer: Thank you for having me! It’s an critically important issue, and I hope for a fair resolution for everyone involved.