FX.co ★ IG Metall Says Warning Strikes Of Volkswagen Workers Could Begin Next Week: Reports

Germany's largest union, IG Metall, recently announced the potential for Volkswagen AG employees across the country to initiate warning strikes following November 30. This date marks the expiry of the current agreement, known as the "peace obligation," which prohibits any strike actions. Typically, these warning strikes span from a few hours to a full day.

The announcement follows the collapse of the third round of collective bargaining discussions between the union and Volkswagen last week, failing to achieve a resolution. Should these strikes occur, they would represent the first substantial walkouts within the company's German operations since 2018. The next round of negotiations is scheduled for December 9, aimed at reaching a new labor agreement.

The talks have centered around proposed significant cost-reduction measures, including a 10% wage reduction and scaling back of benefits. These are driven by mounting competition from Chinese manufacturers, declining demand for electric vehicles, and Germany's economic slowdown.

One potential solution reportedly suggested by the union to lower labor costs involves higher management relinquishing their bonuses. The collective bargaining agreement affects approximately 120,000 of VW's 300,000 employees in Germany.

In late October, Volkswagen revealed plans to shutter at least three plants in Germany, lay off numerous workers, and enforce a 10% pay cut for those remaining. Volkswagen operates ten facilities and employs about 300,000 people throughout Germany. If executed, this would be the first instance of the company closing domestic plants in its 87-year history.

Meanwhile, American automaker Ford also faces opposition from IG Metall due to its intention to slash thousands of jobs as part of restructuring efforts at its production site in Cologne, Germany. On November 20, Ford stated it would reduce its European workforce by around 14%. Earlier in January 2023, Ford had already announced plans to eliminate 3,200 jobs in Europe, predominantly in Germany.

IG Metall, representing over 2 million workers in the metals and manufacturing sectors, particularly in the automotive industry, is Germany's largest union. It also advocates for workers in the renewable energy sector, including those producing wind turbines and solar panels.