WOLFSBURG, Germany, Dec. 9 – Volkswagen (VW) workers have issued an ultimatum to management, warning that failure to compromise on wage cuts and plant closures could lead to unprecedented strikes in 2024. The standoff escalated as workers staged walkouts at nine German sites and gathered in Wolfsburg, the automaker’s headquarters, to protest the company’s cost-cutting measures.
Intensifying Labor Action
The latest wave of strikes, which lasted four hours on Monday, comes as part of ongoing protests that began last week with two-hour walkouts. Union leaders, led by IG Metall chief negotiator Thorsten Groeger, vowed to ramp up pressure if management does not move closer to their demands.
“Volkswagen employees are stopping work nationwide, not for two hours like last time, but for four,” Groeger said, addressing the crowd. “If that isn’t enough, the New Year’s Eve fireworks will be followed by an escalation this company has never seen.”
Union leaders suggested a resolution could still be reached by Christmas if management demonstrates flexibility. However, they warned of more severe actions, including 24-hour or indefinite strikes, if talks fail to progress.
Crisis Amid Cost-Cutting Measures
Volkswagen is seeking to implement wage and capacity cuts to address declining car demand in Europe and rising competition from cheaper Asian rivals entering the market. Chief negotiator Arne Meiswinkel emphasized the need for cost reductions, stating that alternative solutions for German plants must be explored after rejecting a union proposal as unsustainable.
“We must reduce costs and overcapacity,” Meiswinkel said, adding that management and unions must collaborate to secure the company’s future.
Volkswagen CEO Oliver Blume defended the measures, arguing they are essential to navigating a rapidly changing automotive landscape. “We cannot operate in a fantasy world,” Blume said.
Union Pushback
Union representatives dismissed VW’s rationale, accusing management of mismanagement and destroying worker trust. “The brand VW is at risk of being damaged by the board’s behavior, and the share price has hit rock bottom. That is the board’s responsibility,” Groeger said.
Volkswagen’s stock performance reflects the ongoing turmoil, having dropped nearly 25% this year, making it one of the weakest performers among European automakers.
Broader Industry Challenges
The strikes come amid broader upheaval in Europe’s automotive sector, driven by heightened competition from Chinese manufacturers. For example, Chinese EV maker BYD recently announced it had hired nearly 200,000 new employees in car and component manufacturing between August and October.
Potential Impact
While the immediate impact of the strikes is unclear, IG Metall reported that several hundred vehicles were not built at the Wolfsburg plant alone during the initial round of walkouts. Chancellor Olaf Scholz has weighed in, warning Volkswagen against factory closures amid Germany’s broader economic and political uncertainties.
As negotiations, which began in September, continue, workers remain steadfast in opposing wage cuts and plant closures, signaling a turbulent road ahead for Europe’s largest automaker.
