Wage conflict escalates, leading to strikes at Volkswagen plants in Germany.

• Workers at Volkswagen plants in Germany went on strike for several hours each on Monday.
• In Germany, nine Volkswagen factories were impacted by demonstrations, with either temporary work stoppages or shortened shifts being implemented by workers.
• Tensions between the company and workers over changes to labor agreements and potential factory closures have led to warning strikes.

On Monday, labor disputes between German automotive companies and their employees intensified, leading to a work stoppage by workers across Germany.

In Germany, nine Volkswagen car and component factories experienced warning strikes, resulting in temporary work halts or shorter shifts due to worker demonstrations.

According to a CNBC translation, photos on Monday revealed workers carrying banners with messages such as "strike ready" and "warning strikes — our right."

The intensity of the wage dispute at Volkswagen will depend on the negotiations between the businesses, according to Thorsten Gröger, chief negotiator of key union IG Metall.

Gröger warned that ignoring the workforce could lead to further escalations of the conflict. "Those who ignore the workforce are playing with fire — and we know how to turn sparks into flames," he said.

On Monday, Daniela Cavallo, head of the Volkswagen works council, urged workers to take a stand during the ongoing warning strikes. She emphasized that the strikes were aimed at highlighting the demands of workers and making it clear to the board that the only way through a crisis is with the workforce, not against it.

So far, three rounds of negotiations have been held between Volkswagen, the union, and the company's works council without success. More talks are scheduled for later this month.

The negotiations on Dec. 9, as planned by Cavallo, are likely to determine whether there will be convergence or escalation.

Unfortunately, the recent signs sent by the board are not very encouraging, she said according to a CNBC translation.

Volkswagen respects the right of workers to participate in a warning strike and continues to seek a sustainable solution through constructive dialogue, the company said on Sunday.

In September, Volkswagen announced the termination of several labor agreements and the end of its employment protection agreement, which has been in place for its German workforce since 1994. The carmaker also indicated that it may have to shut down factories in Germany for the first time in its history.

The company's works council stated in October that Volkswagen management was considering implementing pay cuts and layoffs on a large scale.

The union and works council have proposed an alternative plan for Volkswagen's future that they claim would prevent plant shutdowns. However, these suggestions were disregarded by the company. On Monday, Cavallo emphasized that plant closures, mass layoffs, and wage cuts were non-negotiable for the workers' side.

Since the peace obligation ended on Dec. 1, workers have been prevented from taking strike action. The last major strikes at Volkswagen occurred in 2018, with around 50,000 workers participating, while smaller warning strikes of several thousand employees took place in 2021.