VW ‘Warning Strikes’ Coming In December As Union Relations Bitter

Volkswagen and the IG Metall union are battling over pay cuts, layoffs, and plant closures

Volkswagen needs to slash wages 10% and remove bonuses as they’re fighting an assortment of headwinds. Nonetheless, the automaker has beforehand mentioned the union needs a 7% pay improve in addition to the reinstatement of terminated agreements.

These are two polar opposites so it comes as little shock that the third spherical of collective bargaining negotiations between Volkswagen and the IG Metall union didn’t end in a breakthrough. Whereas the union is keen to debate concessions that would cut back labor prices by €1.5 ($1.6 / £1.2) billion, there are some strains within the sand they gained’t cross.

Extra: VW Desires To Remove Bonuses And Reduce Wages By 10%

Particularly, the union mentioned Volkswagen’s board “nonetheless doesn’t need to rule out web site closures and mass layoffs.” IG Metall added the automaker is pushing for a ten% wage reduce, a pay freeze, and the cancellation of a €167 ($174 / £139) month-to-month allowance. On high of that, firm officers additionally reportedly desire a “huge discount in coaching capability” in addition to the elimination of anniversary bonuses for long-term workers.

The union was lower than happy with the proposal, so their collective bargaining committee voted unanimously for “warning strikes” beginning in early December. IG Metall’s Thorsten Gröger mentioned, “A labor dispute is looming, the depth of which the nation might not have seen for a very long time.” He added the “workforce in any respect places is ready for battle” and it’s as much as Volkswagen to find out how unhealthy issues will get.

IG Metall

It stays unclear how punishing these strikes might be, however the union complained about Volkswagen’s “poison record” that features plant closures, mass layoffs, and wage cuts. As a substitute, the union is pushing for a wage improve that may be “briefly paid right into a solidarity fund” which might assist to make employees cuts “socially acceptable,” if wanted. Nonetheless, the actual purpose is to maintain folks employed by decreasing working hours.

Whereas the scenario is complicated, the union made one factor clear: this isn’t an idle menace. As they defined, “There might be no answer for Volkswagen workers earlier than the top of the peace obligation on November thirtieth.” This implies strikes are coming as the subsequent spherical of collective bargaining isn’t scheduled till December ninth.

The union will use this roughly one week span to “apply stress” with warning strikes. If Volkswagen doesn’t reply in a method the union likes, Gröger mentioned “It is going to be a labor dispute the likes of which the Federal Republic has not seen for many years.”

For his or her half, Volkswagen mentioned IG Metall signaled its openness to a discount in labor prices and capacities. Additionally they confirmed receipt of the union’s counter-proposal, which they mentioned could be “judged on whether or not it creates each sustainable monetary aid for the corporate and presents clear prospects for the workforce.” Nonetheless, Volkswagen mentioned they’re centered on discussing their very own plan.

This places the 2 sides on a collision course and it might be a bumpy street forward because the collective bargaining settlement covers roughly 120,000 workers at crops in Wolfsburg, Braunschweig, Hanover, Salzgitter, Emden and Kassel. There are additionally workers at Volkswagen Monetary Providers, Volkswagen Immobilien GmbH, and dx.one GmbH.