Berlin, Germany

The Volkswagen labor dispute with the IG Metall union is escalating, though the automaker is bracing for possible strikes across its German operations next week. Friday saw the announcement by the union of thousands of workers that strikes were likely to begin early December when an agreement barring walkouts ran out on November 30.  

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Monday could see warning strikes lasting a few hours to a day, with sources familiar with the matter warning. The strikes could become 24 hour or even the indefinite kind if negotiations are not resolved. It would be the first big scale industrial action at Volkswagen domestic plants since 2018.  

The dispute hinges upon the threatened closures of some plant and 10 percent wage cuts proposed by Volkswagen as it attempts to reduce costs to counter a declining market in Europe and counter the threat of competition from cheaper Chinese rivals. The company, which has been in existence for 87 years, has signalled for the first time that it is willing to close German facilities, sparking fierce resistance from labor representatives.  

The two sides will reconvene next week, December 9, to negotiate a new labor agreement. IG Metall wants a long-term plan to save jobs and preserve all Volkswagen plants in Germany, and Daimler's workers there agree. One means of avoiding layoffs while limiting hours or letting go of bonuses will be proposed by a union and be brought up for discussion. But Volkswagen management has said it will not rule out the closure of plants as part of the negotiations.  

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Volkswagen is already losing ground in its delivery and profits and the strikes could disturb production at a particularly unenviable point. And IG Metall has formally warned the company that its workforce is ready to take sustained action should it prove necessary.  

IG Metall said Volkswagen will pass how long and hard this battle will last at the negotiating table.  

The stakes are high, as Volkswagen seeks to balance profitability and competitiveness while labor groups aim to protect jobs and secure the future of domestic operations in a challenging economic climate.