The workers of Volkswagen in Germany increased pressure on the company with new strikes at the automaker’s factories in the country this Monday (9), when a fourth round of negotiations is scheduled amid an impasse over salary cuts and the closure of production facilities.
The new round of talks, which began in September, comes as Europe’s biggest carmaker looks for ways to radically cut costs in Germany to better compete with Asian rivals in its home market.
Negotiations will begin at around 12:30 pm (8:30 am Brasília time) and workers will carry out four-hour strikes at nine factories in Germany, the second stoppage in a week and which will be twice as long as the stoppages that occurred previously.
Continues after advertising
“It’s time for management to take action,” IG Metall union chief negotiator Thorsten Groeger said at a meeting in Wolfsburg, where the company is based.
“Our expectation for today is that the company will stop insisting on its maximum positions and get closer to us. Trust has been destroyed… workers are very angry. The VW brand is threatened with being damaged by management’s behavior and the share price has been thrown into the deep end. This is the responsibility of the board.”
Workers, who reject any wage cuts or factory closures, can increase the pressure by carrying out 24-hour strikes and even indefinite strikes.
Continues after advertising
“Perhaps this will make the VW board of directors come to their senses. Otherwise, we will continue to tighten,” union IG Metall said in a statement to employees on Friday, adding: “And then things will get very, very uncomfortable.”
Volkswagen insists the capacity and wage cuts are necessary because demand for cars in Europe has fallen, while costs in Germany make it impossible for the group to compete with new rivals.
VW chief negotiator Arne Meiswinkel said unions and management needed to find alternative paths to a solution for German factories after the company rejected a proposal put forward by workers, saying it was unsustainable.
Continues after advertising
“We continue to need to reduce costs and reduce excess capacity,” Meiswinkel said.
Last week, Volkswagen Group Chief Executive Oliver Blume defended the company’s decisions as necessary in a rapidly changing environment, saying management cannot operate “in a fantasy world.”
