VW could face strikes over possible German plant closures

Volkswagen Group could face worker strikes this autumn as the automaker weighs scrapping decades-old job security agreements and the closure of two German factories, the country’s biggest union said.

“Job security is part of the basic consensus developed with the company specifically for times of crisis like this,” Thorsten Gröger, IG Metall’s top negotiator for talks with VW, said Sept. 5 at a news conference.

More than 500,000 workers could take part in strikes if VW does not engage in constructive talks, Gröger added. The union said no strike would take place before the end of November, and that it still hoped to find a negotiated solution.

While the union is sticking to an industry-wide demand for a 7 percent raise, IG Metall chief Christiane Benner, speaking at the same event, said moving to a four-day work week would be a possible concession workers would consider.

The comments come a day after Europe’s biggest automaker defended its plan to consider unprecedented closures in Germany, saying weak car sales have left the company with about two factories too many.

More than 20,000 workers attended an assembly in Wolfsburg on Sept. 4, many jeering CEO Oliver Blume over the plans.

Europe is in the center of a global slowdown in the EV transition after a number of countries including Germany and Sweden reduced or removed incentives.

With car sales still nearly a fifth lower than prepandemic levels, manufacturers including VW, Stellantis and Renault are operating factories at levels analysts consider unprofitable, according to data from Just Auto.

VW last year made roughly nine million vehicles, compared with total capacity of 14 million.

Raising returns at the main VW brand has become tougher with higher logistics, energy and labor costs.

The brand's margin fell to 2.3 percent during the first half, compared with 3.8 percent a year ago.