Trouble at home: Volkswagen workers threaten walkouts in Germany. Here's why

Volkswagen continues to wade through choppy waters in Germany with workers threatening mass walkouts in December over the ongoing dispute with management over planned wage cuts and possibility of job cuts. The most-recent talks between labour union leaders and Volkswagen AG management, held on Thursday, failed to break the impasse.

Volkswagen has been looking at ways to cut costs at its namesake brand and it is reported that plans such as job and wage cuts as well as closure of select factories in Germany have been considered. This has resulted in massive conflict with factory workers in Germany who mostly blame the top management for failing to ensure strong profitability in the face of stiff competition from Chinese brands and thawing sales in Europe.

Earlier this month, Volkswagen announced a slew of proposals in a bid to avoid chances of factory closures. The management said that it was a sign of progress. Just that it wasn't. "The difference between the positions is still massive, and therefore we will use our options to put more pressure on the negotiation process," said Thorsten Groger, a labour union leader and one of the lead negotiators. He was speaking after the talks on Thursday, the third round of such talks. The next round of talks are scheduled for December 9 but workers appear to be running out of patience.

Why are Volkswagen workers fuming?

Volkswagen may have never had it this tough ever before. Sales of its electric vehicles (EVs) have been sluggish at best and its performance in China, the world's largest car market, has been lacklustre. Competition within Europe has been stifling with more and more Chinese brands coming in. This has resulted in the management considering strategies for deep savings. But is it at the cost of its workers?

Thousands of workers of Volkswagen plants in Germany are participating in protests against any plan of wage cuts or worse, downsizing. Around 7,000 were out and about even before Thursday's talks officially commenced. The 87-year-old company, founded around the time Nazis were gaining power in Germany, is having to walk the tightrope because while international pressures and competition is unwavering, workers at home are digging in heels. The company has argued that high energy and labour costs in Germany put it at a disadvantage to European peers as well as Chinese rivals. But workers say the top management should have planned better.

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