Accompanied by new warning strikes, VW and VW are coming to Wolfsburg on Monday IG Metall for their fourth round of collective bargaining. There was no sign of an agreement in the dispute over wage cuts, factory closures and layoffs. With a second nationwide warning strike directly on the day of the negotiations, the union now wants to increase the pressure again: in nine of the ten German VW plants
the belts should stand still temporarily.
VW is planning tough cuts
The collective bargaining round is initially about the pay of around 120,000 employees in the factories Volkswagen AG, where a separate in-house tariff applies. In addition, there are more than 10,000 employees at VW Sachsen, for whom an alignment with the company wage agreement was agreed in 2021. VW rejects any increase and is demanding a ten percent pay cut because of the company’s difficult situation.
What makes the negotiations complicated: At the same time, there is also a struggle over job security, which VW canceled after more than 30 years. Plant closures and redundancies are on the cards. VW also wants to take on fewer trainees and reduce the pay of temporary workers, who previously received a supplement at VW, to the normal level of temporary work.
According to the works council, at least three plants and tens of thousands of jobs are at risk. VW justifies the cuts with high costs and low utilization. “The VW Group is in need of restructuring,” said CEO Oliver Blume (56), according to participants at the works meeting last Wednesday.
IG Metall concept is not enough for VW
VW rejected a counter-concept from IG Metall and the works council for savings without mass layoffs and plant closures as inadequate. IG Metall had offered not to pay out a possible wage increase for the time being, but to put it into a future fund. They promised the group a cost reduction of 1.5 billion euros.
In return, VW should refrain from plant closures and redundancies for operational reasons. However, the prerequisite would be to adopt the most recent pilot agreement for the metal and electrical industry, which provides for an increase of 5.1 percent in two stages. And management and shareholders also have to make their contribution and forego bonuses and dividends, demands works council boss Daniela Cavallo (49).
Blume described the proposals at the works meeting as a “starting point”, but they were far from enough.
There is a risk of further escalation
Cavallo, who sits at the negotiating table for IG Metall, now expects the collective bargaining round on Monday to set the course: “Either we pull ourselves together and start seriously tackling compromises. On both sides,” she said on Wednesday. “Or the board insists on its position and things escalate.” She once again ruled out factory closures, mass layoffs and cuts in monthly pay. This is still out of the question for the employees.
With the warning strike on the day of the negotiations, IG Metall is already tightening its thumbscrews: Unlike the first strike last Monday, work should not just stop for two hours in each shift, but for four hours. Nine of the ten German VW plants are again affected, including all locations except Osnabrück. The VW factory there does not fall under the VW in-house tariff, which is currently being fought over.
So far only minor strike effects
After the first warning strike, VW spoke of only minor production losses. “The effects were limited,” said a spokesman. Production was halted everywhere during the warning strikes. However, they were then able to start it up again without any major problems. With a view to the second warning strike, VW also stated that it wanted to keep the impact as low as possible and had taken targeted measures to ensure emergency supplies.
Both sides had repeatedly stated that they would ideally like to reach an agreement before Christmas. But the time window for this is becoming increasingly narrow, warned Cavallo. VW had also recently shown reluctance to reach an agreement this year.