ALBAWABA - Volkswagen is bracing for significant disruption as the IG Metall trade union has called for labor strikes across all its German plants starting Monday, Reuters reports.
The dispute comes as a result of Volkswagen's plans for restructuring, which aim to tackle declining car sales and escalating competition from Chinese manufacturers, as reported by Deutsche Welle.
As part of its cost-cutting strategy, the company is looking to close plants and lay off large numbers of workers in addition to proposing a 10% pay cut. IG Metall has strongly opposed these measures, vowing to take action to protect employment and salaries.
Thorsten Gröger,union negotiator, commented that the corporation decided to prioritize cost-cutting over collaboration and cautioned that the duration and impact of the strikes will hinge on the company's desire to engage in sincere negotiations.
“This could become the toughest wage dispute Volkswagen has ever faced,” he stated.
About 120,000 employees covered by collective bargaining agreements are participating in the strikes, according to DW. Although the first walkouts are only expected to last a few hours, IG Metall has declared that if talks don't progress, there may be more drastic measures taken, such as 24-hour strikes or extended industrial action.
In response to Volkswagen's earlier announcement that it might have to close German plants for the first time in its 87-year history, IG Metall said that employees would be willing to forgo pay increases totaling €1.5 billion ($1.6 billion) if company executives pledged not to close any factories and agreed to forgo some of their bonuses, according to CNN.
In the meanwhile, Volkswagen has taken action to prepare for the interruptions. While acknowledging the right of workers to strike, a corporate spokesperson stressed the need to minimize the effect on suppliers, customers, and operations.
