Volkswagen Faces Historic German Labour Strikes

Volkswagen's labour representatives in Germany have voted for limited strikes starting in December. The IG Metall union announced the strikes after failed negotiations about wages and plant closures. This comes in response to Volkswagen's demand for a 10% wage cut and possible plant closures.

In a significant move, Volkswagen's labor representatives in Germany have voted for limited strikes set to begin in early December, as announced by their union, IG Metall, on Friday. The decision follows a breakdown in negotiations over wages and potential plant closures.

The bargaining committee at VW AG, a subsidiary of Europe's largest automaker, reached a unanimous decision in favor of labor action. "As a result, a labor dispute will follow, which will put the company under massive pressure," stated IG Metall. The union's negotiator, Thorsten Groeger, emphasized that comprehensive proposals have been presented to Volkswagen, calling on the company to determine the length and intensity of the dispute.

Volkswagen is demanding a 10% wage cut for its German workforce, citing the need to reduce costs and enhance profitability amid competition from China and declining European car demand. Additionally, the company is threatening its first-ever plant closures in Germany's 87-year history. Initial warning strikes in December could escalate to longer actions, with further talks scheduled for December 9.

(With inputs from agencies.)