Volkswagen workers strike at factories across Germany

Thousands of Volkswagen workers in Germany went on strike on Monday after the company announced plans to close three plants and slash pensions. 

What happened during the strikes? 

"Warning strikes will begin Monday in all plants," said Thorsten Gröger, who is leading the union negotiations with the German auto giant.

"If necessary, this will be the toughest wage dispute Volkswagen has ever seen."

Tens of thousands of employees with the IG Metall union stopped work at 9:30 a.m. The strike began with two hours of stopping work, a process repeated by the late shift.

At least 66,000 VW employees took part in the strike on Monday, IG Metall said, with stoppages looking to continue into early Tuesday. 

The move is a response to €18 billion ($19 billion) in budget cuts at the struggling carmaker, which includes major changes to its generous pension plan and an unprecedented three plant closures within Germany. 

"We demand that all make their contribution — management and the shareholder side as well," workers' council leader Daniela Cavallo said at the rally outside VW's flagship plant in Wolfsburg, referencing a demand from employees that executives take cuts to their Christmas bonuses.

She said the next round of talks, schedule to take place next week, "is likely to set the course — rapprochement or escalation. We are ready for both."

Volkswagen Group says it 'respects workers' rights'

In response to the action, the Volkswagen Group said it "respects worker's rights" and added it is supportive of "constructive dialogue" in order to reach "a lasting solution that is collectively supported."

Amid the strike action, VW group said it carried out "measures to guarantee urgent deliveries."

Volkswagen has earlier rejected a proposal from labor representatives that could avert layoffs and factory closures. The company said the measures proposed by labor representatives "will not lead to any sustainable financial relief for the company in the coming years."

Sluggish economy

The issues at Volkswagen highlight the struggles facing the eurozone's economic powerhouse.

Germany's export-heavy economy has been suffering in recent years due to declining industrial orders.

VW, for example, has seen its once-lucrative Chinese market rapidly shrinking as domestically produced electric vehicles become more popular there. Moreover, looming EU tariffs on Chinese EVs have prompted fears of retaliatory measures.

In October, VW reported a 64% plummet in third-quarter profits. Other German automakers, such as BMW and Mercedes-Benz, have also reported major losses.

es/zc (AFP, dpa)