Union sets deadline for Volkswagen

The union IG Metall has given Volkswagen until the end of October to reverse its decision to cancel nearly all internal collective agreements, or face potential strikes starting in January.

Volkswagen cancels wage agreements

Volkswagen has canceled agreements that covered wages, working hours, holidays, job classification, bonuses, and other employment terms, though it says current rules still apply until new deals are reached.

Restructuring plan includes job cuts

Volkswagen’s restructuring plan, approved in September, aims to cut 100,000 jobs globally by 2030, with half of these cuts already implemented since 2024. Four German plants are at risk of closure.

Reasons for job cuts and salary freezes

Volkswagen cites Chinese competition, tariffs, and the cost of shifting to electric vehicles as reasons for the cuts. The company is also considering freezing the salaries of 660,000 employees worldwide until 2030.

Union demands and wage negotiations

IG Metall is demanding a 5% raise and wants wage negotiations to begin by early December. The union insists that talks must start before the social peace obligation in Germany expires in 2027.

Potential impact of a strike

If Volkswagen does not reverse its decision, the union threatens large-scale strikes that could affect delivery timelines, although no strike is possible before January. Some models are already assembled outside Germany.