Daily Discussion - December 1, 2024

“If necessary, this will become the toughest wage dispute Volkswagen has ever seen,” IG Metall’s chief negotiator Thorsten Groeger said in a statement Sunday. “How long and intense this dispute will be is Volkswagen’s responsibility at the negotiating table.”

“Volkswagen has set our collective bargaining agreements on fire, and instead of extinguishing this fire during three rounds of negotiations, the management board keeps throwing open barrels of gasoline onto it,” he added.

The walkouts will be the first large-scale strikes that Volkswagen has faced since 2018, according to IG Metall, when 50,000 workers idled plants over pay. Although the work stoppages will last only a few hours, it is possible that 24-hour warning strikes could be called later this year. Indefinite strikes could also be called as a last resort, but only after members have been consulted again, IG Metall said.

The strikes represent a fresh headache for Europe’s largest automaker, which saw operating profit for the first nine months of the year tumble by a fifth from the previous year, as its flagship brand struggled. Vehicle sales also slipped on particularly weak demand in China, where it is losing market share to Chinese electric vehicle brands.