Workers at nine Volkswagen factories across Germany brought assembly lines to a halt on Monday, Dec. 2, as they launched rolling two-hour strikes. The autoworkers are protesting pay cuts and proposed factory closures the automaker claims are necessary to make up for slumping sales in Europe.
Volkswagen reportedly wants 120,000 German workers to take a 10% pay cut and is proposing the closure of three plants, according to an employee representative who was interviewed by The Washington Post. The closures would be the company’s first in its nearly 90-year history.
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Volkswagen argues the changes are necessary as it struggles with low demand, high production costs, Chinese competition and a sluggish transfer to electric vehicles. The walkouts took place prior to talks over a new labor agreement after a mandate period barring strikes expired on Sunday, Dec. 1.
Workers’ representatives warn the Volkswagen strikes could escalate to 24-hours or longer if a deal is not struck during the next round of labor negotiations set for Monday, Dec. 9.
The autoworkers union for Volkswagen employees reportedly presented measures it said would save the company $1.6 billion, which would include a bonus freeze for 2025 and 2026. However, Volkswagen management dismissed the idea as unrealistic.
A union representative in Hanover, Germany, criticized Volkswagen for making workers’ pay for what he considered mistakes by those at the top of the company’s management, including the “diesel emissions scandal,” in which the Environmental Protection Agency (EPA) found from 2009 through 2015 the company intentionally covered up its emission output in its diesel vehicles to meet U.S. vehicle standards.
The union representative also blamed company leadership for falling behind on innovation to Chinese companies.
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