Gröger said “warning strikes” will take place before Dec. 9, ahead of the next round of negotiations with management over cost cuts, and threatened much more sweeping action should talks go poorly. “There is the possibility of larger-scale industrial action,” he said. “We are prepared for that.”
The challenges come at a time when Germany’s government is unable to act following the collapse of the three-party ruling coalition earlier this month. It could be several months before Germany has a new government, as negotiations between the parties could drag on well after the Feb. 23 election. Even then, the country’s constitutional debt brake, which restricts spending, is likely to limit the new coalition’s firepower.
In Germany there are few more potent symbols of the country’s rising economic woes than the decline of VW. Amid plummeting profits, flatlining sales in Europe and a collapse in its core Chinese market, the automaker announced late last month that it is planning to shutter factories on German soil.
Early investments in electric-car technology were plagued by delays and high costs, causing VW to fall behind United States rival Tesla and China’s BYD. Should U.S. President-elect Donald Trump now follow through on his threat to impose tariffs on European imports, it would further compound the already difficult situation for workers in German plants.
VW’s troubles are a parable for German industry more broadly, with manufacturers across the country hemorrhaging jobs. The steady drumbeat of bad economic news grew louder this week as steelmaker Thyssenkrupp announced it could shed up to 11,000 positions by 2030.
But trouble in the automotive sector will hit Germany particularly hard. The industry is responsible for 11 percent of manufacturing jobs in Germany, going beyond the car brands to their suppliers. Bosch has announced it is cutting 3,500 jobs; ZF Friedrichshafen is considering laying off at least 12,000 employees by 2030; Continental is looking to cut 5,500 positions worldwide.
