
Volkswagen is embroiled in serious labor disputes, with tensions between the union and the company escalating sharply. The IG Metall union will launch a warning strike at all Volkswagen plants in Germany on Monday, in response to the company's plans to cut wages, close factories, and lay off employees. Volkswagen has demanded a 10% pay cut from employees, citing high costs and low utilization, and plans to lay off workers for operational reasons starting from July 2025, which directly terminates the employment security agreement. The union proposed temporarily withholding potential wage increases, depositing them into a fund to flexibly reduce working hours, and committing to cutting €1.5 billion in costs for the group, hoping the company would avoid factory closures and layoffs. However, Volkswagen rejected the proposal. According to the labor council, at least three factories and tens of thousands of jobs are at risk, with rumors of closures at the Dresden, Osnabrück, and Emden plants. Although Volkswagen has stated its desire to minimize the impact of the strike, if it occurs, it will undoubtedly disrupt the company's production. This conflict not only affects the immediate interests of employees but also Volkswagen's future development. The next round of labor negotiations is scheduled for December 9. Whether Volkswagen can reach a consensus with the union to control costs while protecting employee rights will be key to resolving this crisis. If mishandled, Volkswagen could face severe consequences such as production disruptions and damage to its brand image.
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