Volkswagen Workers Strike in Slovakia as Economic Model Buckles
- Company calls Slovak union’s salary demands ‘irresponsible’
- Strike seen reducing GDP growth by 0.1ppt every 12 days
An employee carries the radiator grille of a VW Touareg sport-utility vehicle at the Volkswagen AG (VW) factory in Slovakia.
Photographer: Jochen Eckel/BloombergWorkers at Volkswagen AG’s Slovak unit began an indefinite strike over wages, underscoring the risk of a skilled-labor shortage materializing in a key European Union manufacturing hub as unemployment plumbs record lows.
The walkout began at 6 a.m. on Tuesday after talks failed to reach a last-ditch compromise on Monday. Workers are asking for a 16 percent rise in wages by next year, almost double the company’s last offer for an 8.9 percent increase, a one-time payment of 350 euros and other benefits. The union’s demands are “irresponsible and put the future of the company and jobs at jeopardy,” the unit’s spokeswoman, Lucia Kovarovic Makayova, said by email.