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Volkswagen staff to go on warning strikes throughout Germany By Reuters

by Index Investing News
December 1, 2024
in Stocks
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By Maria Martinez

BERLIN (Reuters) – Volkswagen (ETR:) staff will go on warning strikes on Monday at vegetation throughout Germany, labour union IG Metall stated, marking the primary large-scale walkouts at Volkswagen’s home operations since 2018. The beginning of the strikes represents an extra escalation of a dispute between Europe’s high carmaker and its staff over mass layoffs, pay cuts and potential plant closures – drastic measures the corporate says it can’t rule out within the face of Chinese language competitors and cooling shopper demand.

Labour representatives at VW had on Nov. 22 voted for restricted strikes at German operations from early December after talks over wages and plant closures failed to realize a breakthrough. “If obligatory, this would be the hardest collective bargaining battle Volkswagen has ever seen,” IG Metall negotiator Thorsten Groeger stated in a press release. The carmaker stated it continues to depend on constructive dialogue to discover a sustainable answer. “Volkswagen respects the fitting of workers to participate in a warning strike,” a spokesperson stated in reply to the union’s announcement, including that the corporate had taken steps prematurely to make sure a fundamental stage of provides to prospects and minimise the influence of the strike. Warning strikes in Germany often final from a couple of hours.

The union had final week proposed measures it stated would save 1.5 billion euros ($1.6 billion), together with forgoing bonuses for 2025 and 2026, which Europe’s high carmaker dismissed.

Volkswagen has demanded a ten% wage reduce, arguing it must slash prices and enhance revenue to defend market share within the face of low-cost competitors from China and a drop in European automotive demand.

The corporate is threatening to shut vegetation in Germany for the primary time in its 87-year historical past.

“Volkswagen has set hearth to our collective agreements and as an alternative of extinguishing this hearth in three collective bargaining periods, the administration board is throwing open barrels of petrol into it,” Groeger stated.

An settlement to not stage walkouts had ended on Saturday, IG Metall stated, enabling staff to hold out warning strikes from Sunday throughout VW AG’s German vegetation.

“Warning strikes will begin in any respect vegetation from Monday. How lengthy and the way intensive this confrontation must be is Volkswagen’s duty on the negotiating desk,” Groeger stated.

Labour representatives and administration will meet once more on Dec. 9 to hold on negotiations over a brand new labour settlement for staff on the German enterprise – VW AG – with unions vowing to withstand any proposals that don’t present a long-term plan for each VW plant.

($1 = 0.9456 euros)





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