Volkswagen(VW) has been considering closing some plants in Germany amid efforts to regain its competitive edge in Europe. This could lead to thousands of workers being rendered jobless as these German plants employ about 1.2 lakh workers. Employees of Volkswagen and members of the IG Metall Union walked out on 2 December, 2024 to protest against the massive job cuts.
Thousands of employees marched along with a line of new EVs that left the VW plant at Zwickau. Workers held walkouts in Hanover and Wolfsburg too in addition to the sites across Germany.
The Works Council feels VW is trying to deny workers their rights and that the workers are ready to “go to war” if required. It has been threatened that these warning strikes or short-walkouts can very well grow into a serious and long-drawn industrial dispute.
Escalating costs and the increasing popularity of electric vehicles (EVs) has forced VW to consider drastic measures. The auto maker, which owns ten popular brands, is also facing stiff competition in China. In addition, there is political uncertainty too with the elections just about three months away. Volkswagen’s profits fell by 64 per cent in October, coming down to 1.58 billion euros in Q3. In its 87-year old history, Volkswagen has never had to shut down any factory.
The company has expressed its willingness to have constructive discussions with the disgruntled workers so that a proper solution can be arrived at which is agreeable to all.
