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German union threatens industrial action as Volkswagen crisis escalates

AFP
AFP - news@thelocal.de
German union threatens industrial action as Volkswagen crisis escalates
Employees attend an information event organised by the General Works Council of Volkswagen AG at the VW headquarters in Wolfsburg in October. Photo: picture alliance/dpa/dpa-Pool | Julian Stratenschulte

Crisis-hit auto giant Volkswagen will face strikes of a magnitude unseen in Germany for decades unless it rules out plant closures, a union warned Wednesday, ahead of fresh talks.

The union representing workers at Europe's biggest carmaker also presented proposals it said would save 1.5 billion euros ($1.58 billion) in labour costs without the need for drastic steps.

The crisis at the carmaker, facing problems ranging from high costs to slowing sales in China, erupted in September when it said it was mulling the closure of factories at home in Germany for the first time.

Ahead of negotiations between VW bosses and workers' representatives Thursday, the IG Metall union urged management to heed their suggestions and drop their most dramatic plans.

If Volkswagen's management insists on "extreme positions and plant closures, then... we will have an industrial dispute over locations the likes of which have not been seen in this country for decades," union negotiator Thorsten Groeger told a press conference.

"And that would happen in a situation of geopolitical crises, economic weakness, a government without a majority and an industry in transition."

READ ALSO: Germany's Volkswagen demands 10 percent wage cut in talks

The crisis at the auto titan comes amid heightened uncertainty in Europe's biggest economy, which is heading for early elections in February after the collapse of Chancellor Olaf Scholz's coalition earlier this month.

Worker representatives have said at least three German VW plants are at risk and tens of thousands of jobs could go at the flagship brand, while remaining employees face big pay cuts.

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On Wednesday they suggested steps to make savings without having to close plants or for staff to have to take pay cuts.

They proposed that management and staff should waive bonuses and dropped their demand for pay rises in exchange for agreeing to work shorter hours to deal with overcapacity at some factories.

Daniela Cavallo - chief of VW's works council, which also represents staff - said every scenario presented by management during talks so far included plant closures and significant job losses.

"It is a scenario that we cannot imagine and that massively crosses our red lines," she added.

If no agreement is reached in Thursday's talks, VW workers could take strike action from December.

Volkswagen, whose 10 brands range from its core VW models to Seat, Skoda and Porsche, last month reported a 64-percent fall in third-quarter profit.

READ ALSO: Is Germany really on course to cut 140,000 auto industry jobs in a decade?

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