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Workers Strike At Volkswagen Plants Across Germany

Workers at Volkswagen (VLKAF) automotive plants across Germany are staging strikes as the conflict between the automaker and its employees over potential factory closures escalates.

Nine of Volkswagen’s factories in Germany have been impacted by what workers are calling “warning strikes,” with work either being halted for demonstrations or shifts ending prematurely.

So far, three rounds of labour negotiations between Volkswagen and its main workers union have failed to produce a new collective agreement. Further talks are planned in December.

The workers strike comes after Volkswagen scrapped labor agreements and said it was ending its employment protections that have been in place for its workforce since 1994.

The automaker has said that it needs to close several manufacturing facilities in its native Germany for the first time in its history.

Management has also warned that it is considering widespread pay cuts and layoffs as it tries to adjust to slowing automotive sales, particularly of electric vehicles.

Workers had been prevented from taking strike action under a contract provision that ended on Dec. 1. The last major strike at Volkswagen occurred in 2018, with 50,000 workers participating.

The stock of Volkswagen has declined nearly 30% this year to trade at 80.62 Euros ($84.83 U.S.).