Trade union IG Metall has said tools will be laid down at all Volkswagen factories in Germany as workers demand more pay amid continued troubles for the carmaker.The IG Metall trade union called for widespread labor strikes at all Volkswagen plants in Germany from Monday, after negotiations over looming job cuts fell through last week.

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The German automotive giant says it needs to restructure and reduce production capacity amid sluggish car sales that are not expected to recover to pre-pandemic levels.

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What are both sides saying?

VW has demanded wage cuts for workers, and has threatened plants closures and mass lay-offs as part of a major cost-cutting program.

Labor officials have promised to lead a bitter and intense struggle against any such cuts, and on Sunday promised "warning strikes" at all plants on Monday.

"How long and how intense this dispute must go on is a matter for Volkswagen to decide at the negotiating table," said IG Metall negotiator Thorsten Gröger. "If necessary, this will be the toughest wage dispute Volkswagen has ever seen."

Collective bargaining talks between VW and IG Metall are ongoing, but they have so far yielded little in the way of agreement.

The conflict centers on the pay of the approximately 120,000 employees at VW plants where collective bargaining applies.

VW has so far rejected any increase and is instead demanding a 10% wage cut due to the difficult situation of the group.

It says it needs to slash costs, raise profits, and defend market share in the face of cheap competition from China and lower European car demand.

A mandatory labor truce, which had prohibited strikes, expired on Saturday. Another round of negotiations is set for December 9.

The last time there were widespread actions across plants in Germany, rather than at individual locations, was in 2018. According to IG Metall, more than 50,000 employees took part at the time.

wmr/rc (AFP, dpa)

(The above story first appeared on LatestLY on Dec 01, 2024 05:40 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).