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. 

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.

What are both sides saying?

VW has demanded wage cuts for workers and has threatened plant 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.

 "We don't want this conflict — but we will continue it as long as the executive board only focuses on cuts and lay-offs instead of prospects," Gröger warned. 

Meanwhile, a Volkswagen spokesman said the company has been preparing for a possible strike but did not provide details on what disruptions are expected.

"We want to minimize the impact of the warning strike on our customers, our partners and our industrial plants as much as possible," the company spokesman said. "That is why the company has already taken specific measures in advance to ensure emergency supplies."

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

In a concession, union negotiators have proposed forgoing bonuses for two years and creating a fund to finance a temporary reduction in working hours in parts of the business that are less productive.

What is the conflict about?

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.

While the automaker has welcomed workers' willingness to consider labor cost and capacity reductions, it has added that any wage deal must offer "sustainable financial relief."

VW 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)