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Investor's Crypto Daily > Blog > Headlines > Economy > Economic News > Audi Factory Closure Plans Spark Protests by Over 5,000 Workers Near European Parliament
Economic News

Audi Factory Closure Plans Spark Protests by Over 5,000 Workers Near European Parliament

Last updated: September 16, 2024 3:21 pm
By Chad McAuley 5 Min Read
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On Monday, thousands of workers converged on Brussels to disrupt the area around the European Parliament. They set off fireworks and blocked roads in an extensive demonstration.

Contents
Audi employees fear 3,000 job lossesAudi Factory Closure: EU Policies Under scrutinyMaintain Europe’s competitive advantage

This protest was held to demonstrate solidarity with the employees of an Audi plant in Brussels who may lose their jobs as a result of the transition towards greener technologies.

Over 5,000 people from Belgium, and other neighboring countries, joined in the protest. They expressed their concern over job loss and foreign competition, especially from China.

Audi employees fear 3,000 job losses

This rally was led by the trade unions and began at Brussels North Train Station. It then moved to the European Parliament.

The protesters held placards in support of the Audi employees and called for an end to “dumping” industrial products from Chinese manufacturers.

The demonstration, which was disrupted by a nationwide strike that affected public transportation in Europe, highlighted the growing fear of key European industries not surviving the shift to more environmentally friendly technologies.

Audi’s Forest factory, located in a Brussels suburb, has 3,000 employees, of which 90% could be laid off within the year despite its focus on electric vehicle (EV) manufacturing.

Audi Factory Closure: EU Policies Under scrutiny

Even facilities that are devoted to green manufacturing like Audi’s EV factory, according to union leaders, could be at risk. The protesters were enveloped by green and pink smoke, a product of the unions. They expressed their frustration at the lack support they received from the Belgian Government and European Union.

Police stationed nearby water cannons as tensions grew, anticipating a possible escalation.

Families of employees and workers who have been in the same job for many years demanded that stronger measures be taken to safeguard jobs.

Ursula von der Leyen, the new President of the European Commission, has promised to implement a “Clean Industrial Act” within her first 100 days in office.

The goal of this policy is to help high emission sectors transition to more environmentally friendly practices, while maintaining production in Europe.

The specifics regarding the financial assistance tied to this policy are still unclear. This has raised concerns for both European businesses and workers.

The EU has also considered tariffs for EVs made in China.

Recent investigation has revealed that the vehicles in question are subject to significant subsidies from governments, resulting in an oversupply on the European market.

The EU’s Trade Commissioner Valdis Dobrovskis will meet China’s Commerce minister Wang Wentao on September 25 to discuss findings of the investigation.

Maintain Europe’s competitive advantage

In order to maintain Europe’s competitiveness there has been an increasing demand for significant investment.

Mario Draghi, former president of the European Central Bank (ECB), recently proposed that the EU allot up to EUR 800 billion for the EU to tackle the “existential challenges” associated with falling behind international rivals.

Draghi said that without this action, Europe could be in for a slow agony.

European business groups also called on the EU to reduce red tape and energy costs in order to keep industries competitive.

Volkswagen AG and other companies in the automotive industry are considering asking for a delay of two years in meeting 2025 emission targets. The company is facing significant difficulties in achieving these goals.

The protests of Audi employees are part of an unrest wave in Brussels. In recent months, farmers have blocked the city of Brussels with tractors as a response to increasing costs and stricter environmental regulations.

Von der Leyen responded by putting some regulations on hold and initiating “strategic discussions” with the affected sectors.

In the next few years, the Commission will face a major challenge in balancing its green agenda and support of key industries.

As new developments unfold, this post Audi Factory Closure Plans Spark Protest by Over 5,000 Workers Near European Parliament could be updated.

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