Volkswagen's Labor Showdown: Strikes Loom Over Plant Closure Talks

Volkswagen's CEO Oliver Blume and labor boss Daniela Cavallo clashed over proposed cuts during a tense staff meeting. Management pushed for plant closures in response to Chinese competition, while workers warned of strikes if closures remained part of wage talks. German Labour Minister Hubertus Heil also attended.

Volkswagen's leadership and labor representatives faced off in a heated staff meeting on Wednesday, highlighting growing tensions over plant closures and salary negotiations. CEO Oliver Blume emphasized the necessity of significant cuts in reaction to intense market pressures, particularly from China.

The meeting, held at Volkswagen's main Wolfsburg plant and attended by around 20,000 workers, saw Labor Minister Hubertus Heil present, accentuating its gravity. With a crucial negotiation round looming on December 9, Volkswagen cited high German labor costs as a barrier to competitiveness, much to the chagrin of workers who view plant closures as unacceptable.

Despite management's insistence on urgent measures to safeguard Volkswagen's future, Daniela Cavallo, head of the labor council, urged compromises from all stakeholders. Stressing the importance of reaching a deal by Christmas, she argued that all parties must be prepared to make concessions to avoid further strikes.

(With inputs from agencies.)