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VW talks: German union demands deal before Christmas

November 21, 2024

Volkswagen has threatened plant closures and layoffs in a bid to reduce labor costs. German workers could declare strikes starting in December if talks fall through.

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IG Metall members at warning strike in front of VW factory in Osnabrück, Germany
IG Metall and the VW workers' council are calling for the German automaker to strike a deal with workers before ChristmasImage: Titgemeyer/osnapix/picture alliance

Workers' representatives have called for a deal in collective bargaining talks with Volkswagen (VW) by Christmas, the IG Metall trade union and VW's workers' council said on Thursday.

VW is Europe's largest automaker and has threatened plant closures and layoffs in a bid to reduce labor costs.

Volkswagen HQ in Wolfsburg, Germany
VW management says it wants to shut factories, citing the need to cut labor costsImage: Daniel Kalker/picture alliance

What did the trade union and workers' council say?

IG Metall's chief negotiator, Thorsten Gröger, urged VW to take on a "constructive" role while speaking ahead of talks on Thursday in Wolfsburg, Lower Saxony.

"We expect Volkswagen to embark on this constructive solution path with us today and to enter into a negotiation process now," he said.

Gröger accused VW management of wasting time in discussions so far and said that IG Metall's decision on whether to call a strike would depend on the results of Thursday's talks. 

The chairwoman of the company's workers' council, Daniela Cavallo, said, "We want to resolve this uncertainty as quickly as possible and let our colleagues know before Christmas how things will continue at Volkswagen."

She described the threat of mass layoffs and plant closures as "maximum provocation" and called for the firm to put forward constructive proposals to solve its crisis.

"The employer side should not make the mistake of assuming that the workforce is not ready to fight," she said, in an apparent reference to future labor action if no deal is struck.

Volkswagen in crisis: Why is the German carmaker struggling?

What else do we know about the negotiations?

A mandated moratorium on industrial action during initial talks is due to expire at the end of November, meaning that warning strikes are possible starting from December 1.

On Wednesday, IG Metall and the VW workers' council offered to take pay cuts in order to avoid mass lay-offs and plant closures. They said that the proposal would result in savings of  €1.5 billion ($1.58 billion) in labor costs.

VW is demanding an across-the-board pay cut of 10% for workers in Germany.

The firm's executives have said that it is struggling with high labor costs and difficulties breaking into the competitive electric vehicle market.

Earlier this month, VW said it was committing to a $5.8 billion investment to boost its transition to electric vehicles in cooperation with US firm Rivian.

sdi/sms (dpa, Reuters)