By Abiola Olawale
An automobile manufacturer, Volkswagen is currently experiencing a huge crisis after thousands of staff working in the company embarked on a strike over an escalating industrial dispute.
It was gathered that workers on duty for morning shifts went on strike for two hours, while evening shift employees planned to leave early to join the protests against Volkswagen’s proposed wage cuts and factory closures. An agreement with management not to go on strike ended Saturday in a stalemate.
According to reports, the strike comes as Volkswagen is grappling with serious financial challenges. These challenges were said to have prompted the company to initiate a plan to cut $11 billion in costs amid fierce competition from foreign automakers.
Recent reports also indicated that Volkswagen’s operating margin dropped to just 3.6%, the lowest it has been in four years, accompanied by a notable 8.5% decline in sales.
As part of its restructuring efforts, Volkswagen plans to close three plants in Germany and downsize operations, which could lead to mass layoffs affecting its extensive workforce of 300,000.
In another significant change to its employee policies, Volkswagen ended a 30-year job security agreement, enabling the company to begin layoffs as soon as June 2025. The proposed measures also include a potential 10% pay cut for workers in Germany and a two-year freeze on pay raises, as indicated by the works council.
However, the workers of the company decided to embark on a strike to express their grievances.
The spokesman of the workers who spoke with the press said: “Our colleagues are angry. Their jobs have been under threat for three months and they have been waiting for a chance to finally show what they think.”
