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EuropeLatest NewsManufacturingGermany

VW staff set to strike in Germany over pay and job cuts

by Kavitha Sivasubramaniam 2 Dec 2024
by Kavitha Sivasubramaniam 2 Dec 2024 Shutterstock / aquatarkus
Shutterstock / aquatarkus

Volkswagen employees in Germany are set to strike over company plans to slash pay and cut thousands of jobs.

Staff at the carmaker’s factories are expected to take action from today after it announced it will close at least three domestic sites for the first time.

Strikes, rallies and demonstrations will be held across six plants, including at its main Wolfsburg site, as well as in Salzgitter, Kassel, Hanover, Emden and Braunschweig. Three of VW’s subsidiaries also plan to take part in the action.

VW currently has 120,000-plus staff in Germany, with around half of employees based in Wolfsburg, east of Hannover. It has rejected any pay rises for these employees, instead proposing a 10% wage cut because of its current challenges in the economic climate.

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The company’s decision has led to a clash with union IG Metall and works council, with claims that the carmaker has worsened the situation.

Publishing details of the industrial action, IG Metall stated: “The fun is over now: Because the board is still insisting on its maximum positions and refusing to finally accept reason and show responsibility in the company wage negotiations, IG Metall is now changing its tune. There are widespread warning strikes – as the first sensitive pinpricks against the employer side and as a foretaste of what is to come if the company continues as before.”

The VW Group, which includes Porsche and Audi, is the biggest employer in Germany, with a workforce of almost 300,000 across the country.

The next round of collective bargaining is expected to take place on 9 December.

A Volkswagen spokeswoman said: “Volkswagen respects the right of employees to participate in a warning strike. The company continues to rely on constructive dialogue with co-determination in order to achieve a sustainable and jointly supported solution.

“We want to keep the impact of the warning strike on our customers, our partners and our industrial plants as low as possible. For this reason, the company has already taken targeted measures in advance to ensure emergency operations.

“The company will provide information on further developments. At the same time, we are using our internal communication channels to inform all employees transparently about the current situation.”

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Kavitha Sivasubramaniam

Kavitha Sivasubramaniam is an experienced journalist, editor and communications professional who has been working in B2B publishing for more than 17 years. After graduating from Bournemouth University with a degree in Multi Media Journalism, Kavitha started her career in local and regional newspapers, before moving to consumer magazines and later trade titles, as well as PR. Specialising in pay and reward, she has been editor of a number of HR publications including Pay & Benefits, Employee Benefits, Benefits Expert, Reward and CIPP’s membership magazine, Professional. In June 2024, she won Pay, Reward and Employee Benefits Journalist of the Year at the Willis Towers Watson media awards. She was also named one of Each Person’s top 20 influential HR bloggers and managed a highly commended content team of the year in 2019.

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