Volkswagen Workers Hit Breaking Point and Launch Massive Strike

Thousands of Volkswagen workers walked off the job early this morning, effectively crippling nine car and parts factories in Germany. Changes to labor agreements and the pending permanent closures of various plants prompted the strike.

After weeks of negotiations, VW refuses to back down from potential plant closures in Germany, which would lead to substantial layoffs. The automaker claims the closures are imminent and necessary to remain profitable against increased competition from China and weakening demand in Europe.

“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,” said Thorsten Groeger, the chief negotiator of labor union IG Metall, per CNN.

Work stoppages like these at VW’s plants usually only last a few hours, but a 24-hour strike could be on the table if negotiations continue to break down. A longer-lasting strike can occur but will need union members’ approval.

Labor Trouble With Volkswagen

Part of Volkswagen’s labor issues began with tossing out six labor agreements earlier this year. The company blamed ongoing “economic challenges” for the decisions.

Temporary workers were adversely affected when VW ended related contracts. An employment protection agreement, which has been in effect for 30 years, was also scrapped. Employees in specialist and management positions saw a wage agreement fall apart as well.

Volkswagen executives warned workers in early September that the company must be proactive under current economic conditions to remain competitive. At the time, VW stated that several brands would need “comprehensive restructuring,” which meant several German plants would likely be closed.

“The situation is extremely tense and cannot be resolved through simple cost-cutting measures,” said VW brand CEO Thomas Schafer.

These issues have led up to the current strike of VW workers. According to Groeger, Volkswagen’s actions have forced the union’s hands.

“We will not accept this silently and without action,” he told CNBC in September.

The strike today is the largest Volkswagen has faced since 50,000 workers walked off the job in 2018. The next round of negotiations begins on Dec. 9.