Volkswagen workers announce strikes as cost-cutting row escalates

Volkswagen workers in Germany are planning to strike starting Monday to protest the failure of negotiations with management on how to cut costs.

It comes amid a dispute over the closure of three factories and the layoff of thousands of workers to cope with falling demand for electric cars, rising operating costs and increased competition from Chinese companies.

Unions are demanding that the factories remain open, accusing management of undermining collective agreements. The company has said it is committed to constructive dialogue to reach a common solution.

Volkswagen’s organizational structure gives workers strong influence in decision-making, complicating management’s efforts to implement cost-cutting plans unilaterally.