Nearly 100,000 Volkswagen workers at 9 plants took part in a mass strike
Nearly 100,000 Volkswagen workers across Germany have left their jobs. The reason? A large-scale protest against the company's cost-cutting proposals.
Here's What We Know
According to Germany's largest trade union IG Metall, 98,650 Volkswagen employees from 9 plants took action. The protest consisted of a two-hour strike for morning shift workers and an early end to work for evening shift workers.
The workers resent the carmaker's proposed cost-saving plans, which include asking employees to accept pay cuts and laying off staff. VW has also suggested that, for the first time, it may have to close two plants in Germany to help the company cope with its perilous financial situation.
VW management probably didn't like this development. The company is already going through tough times: declining demand for electric cars in Europe and the U.S., as well as a serious drop in sales in China. In addition, the car market in Europe has not recovered from the pandemic, with VW selling 50,000 fewer cars a year than before COVID.
The union had previously offered Volkswagen an alternative solution: save €1.5bn by scrapping bonuses in 2025-2026 and creating a fund to reduce working hours during periods of overcapacity. But the company rejected the idea, calling it too short-term.
What's next.
The next round of talks between Volkswagen management and the union is scheduled for 9 December. The question is whether the company can find a compromise and avoid further upheaval.
Source: Reuters
