VW Union To Go On Strike If Company Doesn’t Reinstate Collective Agreement

Volkswagen unions have threatened strikes starting in January unless Europe’s largest carmaker reverses its decision to terminate almost all collective agreements with employees in Germany.

“We are giving the company until the end of October to withdraw the notice of termination of the contract,” said IG Metall union chief negotiator Torsten Greger in Hanover, where a new round of talks between the union and management is taking place.

Otherwise, he warned, a “massive process” will pave the way for strikes at Volkswagen, Reuters reports.

The dispute over planned austerity measures intensified last month, when Volkswagen terminated almost all existing collective agreements with German workers, opening long-standing standards on working hours and holiday pay up for negotiation.

The union accuses the company of abandoning its commitments under a historic agreement from the end of 2024, while management says it is considering all available options to reduce costs and maintain competitiveness.

Volkswagen plans to cut 100,000 jobs and could close up to four factories in Germany as part of the company’s biggest restructuring.

The Wolfsburg-based carmaker faces strong competition from China, billions of euros in customs costs, and a costly transition to electric vehicles.

• See Also: Volkswagen Could Be Persuaded To Sell Its Chinese Models In Europe