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Workers on the streets in Brussels demand a Just Transition amid auto industry crisis

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19 September, 2024On 16 September, thousands of workers from across Europe gathered in Brussels to demand urgent action to protect jobs and ensure a Just Transition in the changing auto industry. We spoke with Georg Leutert, IndustriALL Global Union auto director, who explained the global impact of the shift to electric vehicles and why this demonstration matters for workers everywhere.

The protest comes in the wake of Volkswagen’s recent announcement to suspend its jobs agreement and collective bargaining agreements. Organized by IndustriALL Europe and the European Trade Union Confederation (ETUC), the demonstration brought together workers, union leaders, and industry stakeholders to highlight the growing challenges facing the sector, particularly as companies shift toward electric vehicles (EVs) and face mounting economic pressures.

Georg Leutert emphasizes that the auto industry is at a critical turning point, and workers must be central to the transformation.

“Volkswagen’s decision was a major shock, especially given the company’s reputation as a gold standard in labour relations. This highlights the enormous pressure auto companies are under, particularly due to the transition from internal combustion engines to electric vehicles. The financial constraints, exacerbated by the loss of market share, particularly in China but also in Europe, are being passed on to workers, which is unacceptable.”

As the industry rapidly shifts towards electrification, driven by climate goals and new technologies, workers are increasingly worried about job security and labour conditions. The demonstration in Brussels was a powerful reminder that the future of the auto industry cannot be built at the expense of workers.

"China is leading the EV revolution, both in terms of technology and cost, and European automakers are struggling to keep up. The transition to electric vehicles is inevitable if we want to meet our climate targets, but we cannot ignore the fact that this shift is creating huge pressure on traditional automakers—and in turn, on their workers," 

says Georg.

The success of recent labour negotiations in the U.S., where United Auto Workers (UAW) successfully bargained for new battery factories to be included in national labour agreements, ensures that workers moving from engine plants to battery production facilities maintained their wages and benefits. 

“We need more examples like these of Just Transition”

says Georg.

“Workers are part of this transformation, whether they are moving to new battery factories or adapting to other changes in the industry, and deserve to keep their rights and protections. This should be the standard across Europe and beyond.”

At the heart of the protest is a broader concern: the risk that traditional auto companies, which have long upheld strong labour standards, may lose ground to new industry players with less favourable working conditions. Companies like Volkswagen have been models of social dialogue and codetermination, where workers had a seat at the table through global works councils and collective agreements. The worry is that the rise of anti-union newcomers could undermine these longstanding practices.

“Volkswagen’s structure of social dialogue is exceptional, with workers around the world having a direct line to corporate management,”

says Georg.

“We must ensure that unions continue to have a strong voice across the industry—both in established companies like Volkswagen and globally. If not, the gains that protect workers during times of change could be at risk as anti-union cultures become more prominent.”

As the auto industry continues to evolve, organizing workers in emerging sectors, including electric vehicle production, is crucial to preserving labour rights. Many of the new players in the mobility market, particularly in tech companies and electric vehicle startups, are unorganized and hostile to unions, posing a significant challenge to the labour movement.

“We are seeing too many companies in the auto sector that are completely unorganized, especially in newer areas like electric vehicle production,”

Georg warns.

“Tesla, for instance, is notoriously anti-union, and tech companies entering the mobility market are following suit. We need to act now, organizing workers in these sectors is essential for ensuring fair labour standards moving forward.”

Photo credit: IndustriALL European Trade Union