Workers at German factories for carmaker Volkswagen were set to go on strike from Monday over plans to cut thousands of jobs, union IG Metall announced at the weekend.
The union warned that the strike could become "the toughest collective bargaining battle Volkswagen has ever seen."
Volkswagen, which employs around 120,000 workers in Germany, had been in tense negotiations with unions since revealing in September that it might close several plants in the country.
The company faced financial challenges due to high manufacturing costs, slow progress in the shift to electric vehicles, and intense competition in the Chinese market.
Ahead of the talks last month, IG Metall and Volkswagen’s works councils proposed measures to save 1.5 billion euros ($1.6 billion) in labor costs without closing any sites. The proposals included forgoing bonuses by both management and staff, as well as reducing work hours at some factories in exchange for dropping demands for pay raises.
However, Volkswagen rejected these proposals, stating that while they could offer short-term relief, they would not provide long-term financial stability. The company called the union's proposals "extremely regrettable" and accused them of ignoring employee representatives' constructive ideas.
