December 24, 2024

On December 2, 2024, striking Volkswagen workers gathered outside the Volkswagen plant in Emden, Germany.

Julian Stratenschulte | Getty Images News | Getty Images

Volkswagen Workers across Germany stopped working on Monday as a conflict between the German auto giant and its employees escalated over changes to labor agreements and potential factory closures.

Volkswagen’s nine car and parts plants in Germany have been affected by so-called warning strikes, which have either temporarily halted work due to demonstrations or seen workers cut their shifts.

Photos from Monday showed workers holding banners that read “Ready to Strike” and “Warning to Strike – Our Rights,” CNBC Translate reported.

“If necessary, this will be the most serious wage dispute in Volkswagen’s history,” Thorsten Gröger, chief negotiator for key union IG Metall, warned in a statement on Sunday. He said how long the conflict would last and how intense it would be depended on the companies’ negotiations.

“What follows is a conflict caused by Volkswagen – we don’t want that to happen, but we will steer it as necessary,” he added.

Three rounds of negotiations have so far been held between Volkswagen, the unions and the company’s works council without success. Further talks are scheduled for later this month.

A Volkswagen spokesman said on Sunday that the company “respects workers’ right to participate in warning strikes.” Volkswagen added in comments translated by CNBC that it would continue to rely on constructive dialogue to find “sustainable and mutually supportive solutions.”

At the end of peacetime, Volkswagen employees expressed their intention to strike in front of the Zwickau plant.

Hendrik Schmidt | Image Alliance | Getty Images

This comes after Volkswagen scrapped a series of labor agreements in September and said it would end employment protection agreements that had been in place for the German workforce since 1994. This is the first time in history.

In October, the company’s works council said VW management was also considering large-scale pay cuts and layoffs.

So far, workers have been unable to take strike action under their peace obligations, which ended on December 1. Small warning strikes occurred in 2018.

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