Unions explore all options, including four-day week, amid Volkswagen crisis

Amid tensions with Volkswagen, Germany's largest union, IG Metall, has pledged to explore every possible solution, including the introduction of a four-day workweek, in response to the carmaker's unprecedented proposal to close domestic factories and eliminate long-standing job guarantees. The automotive giant announced on Monday its consideration of these drastic measures as part of a EURO 10 billion (USD 11 billion) cost-cutting initiative.

Volkswagen’s management has indicated that it may close several German plants and end job guarantees at six facilities to address financial pressures exacerbated by slowing car and electric vehicle (EV) demand, increased competition from China, and a complex decision-making process. The company faces a pressing timeline, with executives stating on Wednesday that it has "maybe one, two years" to revitalise its main car brand in the face of these challenges.

Christiane Benner, chair of IG Metall, acknowledged the union's openness to innovative solutions like a four-day workweek but emphasised the need for more details from Volkswagen before presenting specific proposals. "We will leave no idea unexplored," Benner said, highlighting the necessity for forward-thinking solutions to navigate the crisis.

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Historically, Volkswagen and the unions have negotiated agreements to navigate past difficulties. Notably, in 1993, the company introduced a four-day workweek as part of a cost-cutting strategy that preserved 30,000 jobs. This model was adjusted over the years but was eventually phased out in 2006 due to concerns over competitiveness.

Thorsten Groeger, head of IG Metall for the Lower Saxony region, where Volkswagen’s main plants are located, stressed that previous agreements should be leveraged to address the current situation rather than discarded. He also mentioned that negotiations are expected to begin in mid- to late October, with potential strikes starting in late November if an agreement is not reached.

Stephan Weil, Premier of Lower Saxony, emphasized the need for equitable solutions to share the burden of the crisis. “In 1993 and 1994, we had a serious crisis that led to significant agreements,” Weil said, suggesting that similar collaborative efforts could be revisited.

As discussions continue, IG Metall is pressing for an accelerated negotiation timeline to alleviate uncertainty among workers.