According to Reuters, the Stuttgart branch of the German metalworkers' union IG Metall reported that at 2 a.m. local time on October 29 (1 a.m. GMT), employees at Porsche's Stuttgart car factory joined a series of strikes in key German industries as part of a nationwide action by German workers seeking higher wages.
The IG Metall Stuttgart branch stated that the Porsche workers' strike began with the night shift at the Zuffenhausen plant, followed by a public rally in front of the Porsche Museum 30 minutes later.
Porsche employees plan to strike alongside workers from Germany's electrical engineering and metal industries, pressuring employers for pay increases.
These actions mark the conclusion of collective bargaining. IG Metall indicated that the proposed pay increases for the 3.9 million workers involved in the negotiations were too low.
The employers' association proposed a 3.6% pay increase over 27 months, significantly lower than IG Metall's proposed 7%. Companies have criticized the union's demands as unrealistic, given the current general slowdown in the German industry.
The German government faces pressure to reform the economy to revive it amid fierce international competition, weak export demand, and structural challenges facing traditional industries.
However, unions emphasize that Germany's inflation remains high and there is an urgent need for skilled technical labor. "Employees are now conveying to their employers the ongoing price pressures they face at checkout through warning strikes. Suppressing wage growth will not resolve any issues; it will only exacerbate the country's problems."
The strike by Porsche workers coincides with escalating tensions between Volkswagen workers and Volkswagen Group management. The Volkswagen Group plans to close three plants in Germany and reduce the size of other facilities while cutting tens of thousands of jobs, according to the Volkswagen factory works council.
Last week, Porsche, a subsidiary of the Volkswagen Group, announced it was reducing its dealer network in China due to weak demand and revealed plans for billions of euros in cost cuts.