Volkswagen workers strike at factories across Germany
Volkswagen workers strike at factories across Germany
The labor union has promised "the toughest wage dispute Volkswagen has ever seen." VW has planned to close three plants amidst plunging profits.
Summary
Volkswagen workers across Germany began strikes in response to plans to close three factories, cut pensions, and implement €18 billion in budget reductions.
Led by the IG Metall union, the strikes, involving tens of thousands of employees, are part of what unions promise to be VW’s “toughest wage dispute ever.”
The cuts follow a 64% drop in VW’s Q3 profits, driven by declining industrial orders, shrinking Chinese market share, and EU-China tariff tensions.
Union leaders demand executive concessions, with next week’s talks expected to determine escalation or resolution.
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For now only "warning strikes" lasting 2hrs each, rather than a true indefinite strike.
However, in VW's 87-year history, this is the first time that German plants would close. I think that's actually something the workers can use to their benefit. Shareholders are not exactly in a great position as it is.
Is this good timing? At the height of profits is a great moment to start striking. During a recession they have less bargaining power.
I'd say they have more power, as the downside of leaving the strike unresolved is more impactful.
VW have less they can offer though.
Exactly what my point was, yes.
Not to mention that VW is also partially owned by the state of Saxony, I think 20% and where their plants are. We will see if they will be able to close those plants.
Lower Saxony.