By Mauro Orru and Dominic Chopping
Volkswagen employees will begin striking next week as union leaders and the German auto company failed to agree on how to cut costs amid a slow electric-vehicle market and fierce competition, a union official said Friday.
A spokesperson for the IG Metall union said workers would begin warning strikes on Monday, which will see their members down tools for a few hours a day. The duration of the strike will depend on how further negotiations progress, the spokesperson said.
Volkswagen employs around 300,000 workers in Germany and operates 10 plants in the country. The industrial action set to begin Monday relates to around 120,000 employees at plants in Wolfsburg, Braunschweig, Hanover, Salzgitter, Emden and Kassel, and some subsidiaries.
A contractual obligation that prevented a strike is due to expire on Saturday. The latest round of talks between Volkswagen and the union ended without an agreement and negotiations are set to resume on Dec. 9.
Volkswagen didn't immediately respond to a request for comment.
Volkswagen has been at loggerheads with the IG Metall union for weeks as it seeks to implement cost cuts across its domestic business in a move to become more competitive.
Auto makers have been agonizing for months over a sluggish EV market and stiff competition from Chinese rivals that caused many car makers to reassess their strategies. Several auto manufacturers have cut guidance and jobs this year.
Ford Motor recently announced 4,000 job cuts in Europe, mostly in Germany, while General Motors and Nissan Motor have also outlined plans to reduce headcount.
Volkswagen's top labor leader said the group was aiming to shut at least three factories in Germany, lay off tens of thousands of staff and cut worker's wages by 10% in a bid to lower costs.
Workers' representatives had proposed that wage increases be temporarily paid into a fund to finance any drop in working hours, while bonuses would be cut for two years--measures they said would save 1.5 billion euros ($1.58 billion) and avert factory closures and redundancies.
"VW had the chance to take plant closures and mass layoffs off the table in three negotiations--but that didn't happen," IG Metall negotiator Thorsten Groger said in a statement.
"The appropriate response will now follow from the beginning of December: There is a threat of a labor dispute at Volkswagen, the likes of which hasn't been seen for a long time."
Write to Mauro Orru at mauro.orru@wsj.com and Dominic Chopping at dominic.chopping@wsj.com
(END) Dow Jones Newswires
November 29, 2024 06:24 ET (11:24 GMT)
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