No agreement in the VW wage conflict: Management insists on plant closures - Warning strike on Monday

The conflict over pay cuts, plant closures, and staff reductions at Volkswagen is intensifying. On Monday, IG Metall will stage widespread warning strikes against the austerity plans at Europe's largest car manufacturer. Production will be "temporarily put on ice" in all plants, announced IG Metall negotiator Thorsten Gröger. He did not provide details initially, but Gröger mentioned "warning strikes that the company cannot overlook."

With the strike, the union aims to increase pressure in the dispute over billions of euros in cuts. "We do not wish for this conflict – but we will pursue it as long as the management relies solely on cuts and dismissals instead of perspectives," said Gröger. "If necessary, this will be one of the toughest conflicts Volkswagen has ever seen."

"Frustration among the workforce is high"

With actions in Wolfsburg and Zwickau, IG Metall previously marked the end of the peace obligation at Volkswagen and ushered in the intense warning strike phase. The peace obligation, during which strikes are not allowed, expired on Sunday night.

"Frustration among the workforce is high," said works council chairwoman Daniela Cavallo. With the possibility of warning strikes, there is now a vent "to let off steam." She therefore expects strong support for the upcoming actions.

Volkswagen initially did not provide any details about potential production disruptions. The company wants to keep the impacts as minimal as possible, a spokesperson said. Therefore, the company has taken targeted measures to ensure emergency supply. Volkswagen respects the right of employees to participate in a warning strike. The company continues to focus on constructive dialogue with the employee side to achieve a sustainable and jointly supported solution.

Corporation demands a ten percent pay cut

The conflict concerns the pay of around 120,000 employees in the Volkswagen AG plants, where a separate internal collective agreement applies. Additionally, there are over 10,000 employees at VW Sachsen, for whom alignment with the internal collective agreement was agreed in 2021. 

VW has so far rejected any increase and instead demands a ten percent pay cut. Plant closures and forced redundancies are also on the table. The employment security, which had ruled out forced redundancies for over 30 years, was terminated. From July 2025, layoffs could be possible. According to the works council, at least three plants and tens of thousands of jobs are threatened. VW justified the cuts with high costs and weak capacity utilization. In view of weak demand, VW must further strengthen its cost-cutting efforts. According to the works council, the company aims to save an additional five billion euros.

IG Metall's future plan rejected

On Friday, Volkswagen rejected the cost relief proposals from IG Metall and the works council. The board is pouring oil on the fire, said Cavallo. Gröger spoke of "open barrels of gasoline" that the board is throwing into the fire. "We will not tolerate this," he said. With their own concept, IG Metall and the works council aim to prevent plant closures and forced redundancies. Cavallo previously described both as red lines. IG Metall demands a future concept for all locations.

IG Metall and the works council offered to initially withhold a possible tariff increase and instead put it into a future fund for flexible working time reductions. They envisioned a cost relief of 1.5 billion euros for the company. In return, VW should refrain from plant closures and forced redundancies. Volkswagen countered that the proposal does not bring sustainable relief.