VW Faces Looming Strikes Amid Wage Dispute

Volkswagen is on the brink of widespread warning strikes as tensions rise over wage reductions and job security. The labor union IG Metall, together with the works council, has ended the peace obligation, signaling the start of potential industrial action across all German VW plants. This decision affects approximately 120,000 employees who could see a 10% wage cut, plant closures, and possible layoffs.

The conflict centers around VW's demands for wage reductions due to alleged overcapacity, while the union calls for salary increases and job security guarantees until 2035. The workers are gearing up for these strikes, with initial demonstrations already taking place in Zwickau, Saxony, where employees expressed their readiness with symbolic actions.

Negotiations between the company and the union have so far been unfruitful, with the third round ending without an agreement. The union has proposed the establishment of a future fund to finance employment guarantees and reduce costs, but this was rejected by VW. The situation has drawn significant attention, with key figures like Federal Labor Minister Hubertus Heil expected to attend meetings.

The last significant industrial action occurred in 2018, and with the peace obligation now lifted, IG Metall has announced that warning strikes could begin as soon as Monday. The ongoing discussions are set to resume on December 9th, as both sides seek to navigate this challenging period. The outcome of these talks will be crucial, as the threat of industrial action looms large over VW's operations across Germany.