Business · Companies · 38 mins ago
Volkswagen plans global pay freeze through 2030, union says
Volkswagen is planning to freeze pay worldwide through 2030, according to IG Metall and employee representatives.
The plan could affect more than 660,000 workers, although how it would apply in each country is not clear.
Volkswagen did not confirm the plan, saying it would not comment on speculation and that pay matters should be discussed in negotiations.
The company is under pressure to cut costs, and has already announced job reductions as it faces challenges including weaker business in China and US tariffs.
A long pay freeze could reduce workers’ buying power as prices rise; IG Metall estimates real pay could fall by at least 10 percent if the plan goes ahead.
The union is seeking a five percent pay increase for Volkswagen staff and workers in the wider metal and electrical industry.
Talks on a new Volkswagen pay agreement are expected to begin in late November, and the outcome of negotiations will determine what happens next.
Volkswagen is reportedly planning to freeze wages for more than 660,000 employees worldwide until 2030.
IG Metall says the company has instructed personnel managers worldwide to suspend pay increases, with the guidance in effect since early October.
The plan could reduce employees’ real incomes as prices rise, and IG Metall estimates losses of at least 10 percent if it is implemented.
Volkswagen did not comment on the reported plan, while the details of how it would apply in different countries remain unclear.
IG Metall is seeking 5 percent pay increases in upcoming negotiations, which are expected to begin in late November for Volkswagen’s company agreement.
- Who
- Volkswagen employees worldwide, more than 660,000 people, could be affected. IG Metall and employee representatives have reported the plan.
- What
- Volkswagen is reportedly planning to freeze pay until 2030 by suspending wage increases.
- When
- The guidance reportedly took effect in early October 2026. The plan concerns pay through 2030.
- Where
- Volkswagen operations worldwide.
- Why
- The reported aim is to reduce personnel costs.
This story does not have two clearly opposing sides.
The reported pay-freeze guidance took effect, according to employee representatives.
Employee representatives learned of the proposal when the board presented it at a joint meeting of international bodies.
IG Metall and the World Works Council reported the plan, and Volkswagen did not comment.
Negotiations on a new Volkswagen company agreement are expected to begin.
- Employees affected
- More than 660,000 worldwide
- Reported end of freeze
- 2030
- IG Metall pay demand
- 5 percent
- German Volkswagen workforce
- Around 275,000 employees at Volkswagen and its subsidiaries
- Real-income loss
- IG Metall fears at least 10 percent if the plan is implemented
9 sources
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What people are saying
zero rounds until 2030
the place to first reach internal agreements of any kind