Strike at Audi Hungaria affecting VW plants across Europe

Europe
Published:  30 January, 2019

Operations at Audi Hungaria have come to a halt for several days as 9,000 out of over 13,000 workers at the factory, one of Audi’s largest plants, demand higher wages, affecting Volkswagen’s SUV production and resulting in a shutdown at Germany’s home factory.

The ongoing strike, which began on January 24, is said to be affecting several of Volkswagen's car plants in Europe due to disruption in supplies; Audi Hungaria, which manufactured two million engines in 2017, supplies 32 Volkswagen car plants. Reportedly, Volkswagen Slovakia will not be producing SUV cars, including the Volkswagen Touareg, Porsche Cayenne and Audi Q7, during weekends and a four-shift schedule will be reduced to a three-shift plan, as a result of the strike in Hungary. The plant located in Bratislava is reported to have already introduced limits on its production from January 2019 due to the deceleration of China's economy and a drop in Germany's industrial production. The strike has led to a shutdown at Audi’s home plant in Ingolstadt, Germany, due to a lack of vital components from Hungary such as engines.

No agreement between the carmaker and the trade union has been reached so far. Allegedly, Audi has offered a total 20% wage increase in 2019 and 2020, but the union has demanded an immediate 18% increase, and more down the line to give its workers greater parity with Audi’s Slovak employees, who are said to earn +28% more, or the Polish staff, who earn 39% more.

Sources: Spectator/Reuters