In a bid to prevent plant closures and layoffs, IG Metall and the works council at Volkswagen have proposed cost reductions through salary concessions.

Union chairperson Daniela Cavallo emphasized that any salary cuts from management should be substantial and not merely symbolic, stating that without their contribution, the workforce will not make concessions.

More than 7,000 employees gathered at Volkswagen's headquarters in Wolfsburg on November 21, 2024, to protest ahead of the third round of negotiations for a new collective agreement.

Cavallo warned that without solutions from the company, the situation could escalate, highlighting the workforce's readiness to fight for their jobs.

The threat of strikes could become a reality starting December 1, 2024, if an agreement is not reached before then.

The union is seeking a comprehensive package that ensures job security while addressing the company's financial issues, acknowledging that underutilization is a challenge.

The company's financial results have been negatively impacted by higher fixed costs and restructuring provisions, underscoring the urgent need for significant cost reductions.

VW's operational inefficiencies have been masked by profits from China and other subsidiaries, a situation that is no longer viable.

The global automotive market is slowing down, with traditional manufacturers struggling against new entrants, particularly from China, leading to a decline in financial performance among major manufacturers in 2024.

Cavallo stressed the necessity for VW to regain technological leadership, improve software, ensure timely product launches, and enhance customer acceptance of their vehicles.

The proposed fund would be financed by a 5.5% wage increase for the workforce, with workers contributing to help colleagues at risk of redundancy due to overcapacity.

The union is committed to preserving all locations while acknowledging that any job cuts must be socially acceptable, insisting on a socially responsible approach to reductions.