Thousands of angry Volkswagen (VW) workers from across Germany gathered to protest possible plant closures at the carmaker on Thursday, outside where labour leaders met the company for negotiations.
The IG Metall trade union said more than 7,000 workers joined the protests from all 10 VW plants in Germany, demonstrating outside the doors of the arena in Wolfsburg where collective bargaining talks are being held.
Volkswagen, Europe’s largest carmaker, is mired in a deep crisis, and management has threatened potential plant closures and mass lay-offs in a bid to drastically cut labour costs. Management is reportedly also demanding across-the-board 10% pay cuts from VW workers.
Labour leaders, meanwhile, have vowed to mount a bitter and what they warn could be unprecedented fight against any attempt to push through such savings at the expense of workers.
The trade union and the VW Works Council on Thursday called for a deal to be struck by Christmas, warning that initial strikes at VW could loom in the coming weeks if management didn’t make concessions in that day’s talks.
“Future instead of cutbacks” and “All plants must remain” were among the slogans on banners. As potential strikes loom at Volkswagen in the coming weeks, the workers chanted “We are ready!”
“This is just a foretaste of what will happen from December onwards if the company does not take our concrete proposals for solutions seriously,” said VW Works Council Chairwoman Daniela Cavallo.
A mandatory labour peace period, which prohibits strikes during initial negotiations, is due to expire at the end of the month.
Gröger and Cavallo publicly pitched a proposal for workers to forgo salary increases and agree to flexibility to reduce hours at VW’s German plants in exchange for job protections, a package they contended would save the company about €1.5 billion ($1.6 billion).
They said executives at Volkswagen would also need to agree to forgo bonuses and likewise give up raises as part of the offer.
VW management reacted with initial caution and scepticism to the proposal but signalled openness to talks. The company said it remains committed to cost-saving targets.
“Today is the very last chance for Volkswagen to find a good solution without plant closures and mass lay-offs before the end of the peace period,” warned Thorsten Gröger, IG Metall’s chief negotiator. Otherwise there is a risk of escalation from December 1.
“If no solution is found today, there will be no further chance in November,” Gröger said. “Then we will prepare for industrial action.”
“Volkswagen can prepare itself from the beginning of December: There will be a surprise behind every Advent calendar door,” he added.
The VW brand is a major subsidiary of the larger Volkswagen Group, which also owns other brands including Audi, Porsche, SEAT, Škoda and Scania, among others.
Performance at the VW core brand has lagged behind other marques in the VW Group portfolio, and executives have said the company has struggled with high labour costs, excess production capacity and difficulties in transitioning toward electric vehicles.
The cost-cutting measures are intended to increase the core brand’s return to 6.5% profit margins by 2026. Corporate leaders argued such returns are necessary to fund needed investments, including launching new electric models.
The company recently signalled openness to solutions that do not involve plant closures and mass lay-offs in Germany – but only if such a deal allows Volkswagen to still achieve its cost-cutting targets.
The VW in-house wage agreement applies to around 120,000 employees at the six major VW plants in the western German states of Lower Saxony and Hesse.
Workers at additional VW plants in the eastern German state of Saxony are covered by a separate wage deal, although labour leaders have also sought to address the future security of jobs at those plants during the talks as well.
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