Germany. Warning strikes across the country. Volkswagen employees want change

“Strikes are not only possible, but also necessary from the beginning of December,” the IG Metall union said in a leaflet for employees seen by Reuters. The announcement stated that the agreement not to organize protests expires on November 30 this year.

Warning strikes at the car manufacturer's plants are scheduled to start on Monday. As Reuters notes, these are the first such mass protests at the company's branches since 2018.

Read also: Volkswagen starts talks with unions

Volkswagen recently demanded 10 percent pay cuts due to increasing competition from the site China. According to the company, reducing costs and increasing profits will allow it to maintain its market position.

For the first time in its 87-year history, the German giant also threatened to close its plants in… Germany. According to analysts, these will be the first factories located in Osnabrueck in Lower Saxony and Dresden.

On Monday, December 9, trade union representatives and the company's management are to meet to continue negotiations on a new collective agreement for employees. Trade unionists announce the rejection of any proposals that do not guarantee a long-term action plan for each Volkswagen factory.

“If an agreement is not reached, the protests may turn into 24-hour or even unlimited strikes, which will seriously damage the company's production at a time when the manufacturer is already facing a decline in deliveries and profits,” Reuters reports.

As trade unionists announce, “Volkswagen employees across the country are now ready to strike” How long and difficult the conflict will be depends on the December negotiations.

The basis for the discussion will be a proposal to avoid layoffs and plant closures by shortening working hours and waiving bonuses. Currently, the company's management claims that the issue of closing factories cannot be ruled out.

In November, the Japanese car manufacturer Nissan announced a 9,000 job cut. positions and that it will reduce global production capacity by 20%. – These corrective actions do not mean that the company is shrinking – said CEO Makoto Uchida, quoted in the statement.

He added: “Nissan will restructure its business to become leaner and more resilient, while reorganizing its management to respond quickly and flexibly to changes in the business environment.” The decision to cut staff is the result of many difficulties, led by market competition with Chinese competition.

Recently The American company General Motors also announced layoffs.

“As we build GM's future, we must simplify to deliver speed and excellence, make bold choices and prioritize the investments that will have the greatest impact,” a GM spokesman said in a statement. “As a result, we are reducing some teams in our software and services organization. We are grateful to those who helped create a strong foundation that will position GM as a leader moving forward,” he added.

According to CNBC, General Motors declined to disclose the full number of layoffs, but a source familiar with the matter confirmed that more than 1,000 full-time employees would be laid off, including 600 in Warren, Michigan.