Volkswagen workers hold 2-hour strikes to push back against proposed pay cuts and plant closures

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Volkswagen workers have launched rolling two-hour strikes at nine plants across Germany to underscore their resistance to pay cuts and factory closures

FRANKFURT, Germany — Volkswagen workers launched rolling two-hour strikes Monday at nine plants across Germany to underscore their resistance to pay cuts and factory closures the company says are necessary to cope with a slack European auto market.

The work stoppages included the company's base plant at Wolfsburg, where workers were to rally against a cost-cutting drive by the automaker’s management in which they face the threat of the company’s first plant closures in its home country.

The so-called warning strikes, a common tactic in German wage negotiations, are taking place as part of talks for a new labor agreement after a mandatory peace period that bars strikes expired on Sunday. The IG Metall industrial union said any job actions beyond those occurring on Monday would be announced later.

The company is demanding a 10% pay cut for 120,000 German workers and has said it can't avoid shedding factory capacity that is no longer needed. Employee representatives say the company has proposed closing three of its German plants.

Thorsten Gröger, the regional leader of the IG Metall industrial union in Lower Saxony, where Volkswagen is headquartered, said that the company won’t be able to “overlook” the walkouts. “If necessary, this will be one of the toughest conflicts Volkswagen has ever seen.”

The company hasn't publicly detailed its plans but is facing a drop in demand in Europe, higher costs and increasing competition from Chinese automakers. Volkswagen built factories to supply a European car market of 16 million in annual vehicle sales, but now faces demand for