Thousands of Volkswagen workers in Germany went on strike on Monday after the company announced plans to close three plants and slash pensions.
“Warning strikes will begin Monday in all plants,” said Thorsten Gröger who is leading the union negotiations with German auto giant.
“If necessary, this will be the toughest wage dispute Volkswagen has ever seen.”
Tens of thousands of employees with the IG Metall union stopped work at 9:30 am
The move is a response to €18 billion ($19 billion) in budget cuts at the struggling carmaker, which includes major changes to its generous pension plan and an unprecedented three plant closures within Germany.
Gröger charged that “Volkswagen has set fire to our collective bargaining agreements” and that the company board is now “throwing open petrol drums into it.”
“What follows now is the conflict that Volkswagen brought about — we did not want it, but we will conduct it as committedly as necessary!”
Sluggish economy
The issues at Volkswagen highlight the struggles facing the eurozone’s economic powerhouse.
Germany’s export-heavy economy has been suffering in recent years due to declining industrial orders.
VW, for example, has seen its once-lucrative Chinese market rapidly shrinking as domestically produced electric vehicles become more popular there. Furthermore, looming EU tariffs on Chinese EVs have prompted fears of retaliatory measures.
In October, VW reported a 64% plummet in third-quarter profits. Other German automakers, such as BMW and Mercedes-Benz, have also reported major losses.
es/zc (AFP, dpa)
