The Volkswagen plant in Kassel has become the epicenter of a widening labor dispute, as warning strikes gain momentum. Workers are expressing their frustration with management's proposals of layoffs and plant closures, which are part of a broader cost-cutting measure aimed at saving 10 billion euros. These measures include a controversial 10 percent wage cut and threaten the preservation of jobs and locations.
The labor union IG Metall has been at the forefront of the protests, opposing the wage cuts and advocating for an employment guarantee for 130,000 employees. The union has mobilized a significant workforce, with reports indicating participation from up to 103,000 workers, although VW's figures suggest 55,000. The first round of strikes occurred last week, and the second round has drawn at least 12,000 participants.
The ongoing collective bargaining talks in Wolfsburg have yet to yield a resolution. Despite the tension, negotiators describe the discussions as constructive, but significant differences remain. The union proposes redirecting potential pay increases into a fund to offset reduced working hours, a suggestion that VW does not currently see as sustainable.
Amid these developments, German Chancellor Olaf Scholz has urged VW to avoid factory closures. The company is grappling with weak demand in Europe and competitive pressures from China. While the talks continue, unions have warned of possible extended strikes if no agreement is reached by the year's end. The negotiations are set to continue, with the next round scheduled for mid-December, as both sides aim to resolve the stalemate without resorting to drastic measures.
