German automotive giant Volkswagen is facing the prospect of strikes, after the IG Metall union declared the end of a truce in their labour dispute on Saturday, which had prohibited industrial action during initial negotiations.
Tensions have been rising and the first walkouts could occur as early as Monday, according to media reports.
"Production will be temporarily suspended at all plants in the near future," IG Metall lead negotiator Thorsten Gröger announced in Wolfsburg.
Volkswagen, Europe's largest carmaker, is mired in a deep crisis. Management has threatened potential plant closures and mass lay-offs in a bid to drastically cut labour costs.
"The frustration among the workforce is great," Daniela Cavallo, chairwoman of the works council, was quoted as saying. She said that the strike option provides workers with an outlet "to let off steam," and expected significant support for the planned actions.
The conflict centres on the pay of employees at Volkswagen AG plants, where in-house wage agreements apply to around 120,000 employees at the six major VW plants in the western German states of Lower Saxony and Hesse.
Volkswagen has rejected any increases and is instead demanding a 10% wage cut. Plant closures and mass layoffs are also being considered, and a job security agreement has been terminated.
Volkswagen on Friday rejected a proposal from IG Metall and the works council, which had suggested deferring a potential wage increase in exchange for avoiding plant closures and layoffs. The company argued that the offer failed to provide long-term financial relief.
In response, IG Metall is ramping up pressure, with lead negotiator Gröger stating that the planned strikes would be "impossible for the company to overlook."
Negotiations are set to resume on December 9.