Volkswagen workers are set to escalate their industrial action on Monday, with extended strikes at multiple sites in Germany, reported Reuters.

This escalation comes amid a standoff with management over proposed plant closures and layoffs, marking the first such closures on German soil for the company.

The call for the strike follows Volkswagen CEO Oliver Blume's address to 20,000 Wolfsburg workers, stressing the need for labour cost cuts and capacity reductions despite progress in operations and quality.

On Monday, thousands of VW employees are expected to attend a rally in Wolfsburg, the company’s headquarters, just before negotiations resume.

If no agreement is reached, union officials have warned that workers could ramp up pressure, potentially leading to longer strikes or even open-ended walkouts, further escalating the standoff.

This move intensifies the ongoing dispute between labour unions and management, as workers demand a more favourable resolution amid the company’s cost-cutting efforts.

Blume defended his decisions on Wednesday, stating they were essential in a rapidly changing environment and that management could not operate "in a fantasy world.”

IG Metall negotiator Thorsten Groeger said: "It borders on mockery when Oliver Blume stands in front of the workforce and wishes them a Merry Christmas, while at the same time the VW board would prefer to put letters of termination under the Christmas tree for the employees.

"We will now step up our efforts on December 9th and thus increase the pressure on the company at the negotiating table."

The IG Metall union announced that workers at nine Volkswagen sites across Germany would down tools for four hours in "warning" strikes, doubling the duration of the initial action held in early December.