Business · Companies · 5 hrs ago
Volkswagen faces union threat over job cuts and labour agreements
Volkswagen is planning major cuts as it restructures its business in Germany and elsewhere.
The company aims to cut 50,000 jobs by 2030, reduce its range of models and lower costs amid pressure from weaker demand and tougher competition.
IG Metall and Volkswagen’s works council want the company to reverse its decision to end or partly end 10 collective agreements covering about 130,000 workers in Germany.
They warn that keeping the decision could lead to an unprecedented labour dispute, with strikes possible after the current truce ends on 31 December 2026.
Volkswagen also wants to discuss transfer companies, which workers could join to seek new jobs, but IG Metall opposes the idea.
Wage negotiations are due to begin on 24 November, while the union has demanded that Volkswagen withdraw its plans by the end of October.
Volkswagen plans to cut a further 12,000 jobs at its core brand by 2030, in addition to more than 35,000 previously announced reductions.
The company wants to discuss publicly funded transfer companies for affected workers, a proposal opposed by IG Metall.
The union and company management made no progress at a crisis meeting on Friday.
Volkswagen has cancelled 10 collective agreements due to expire on 31 December 2026, covering around 130,000 employees in Germany, according to Bild and t-online.
Union officials warn that industrial action could begin after the peace obligation ends on 31 December if no agreement is reached.
- Who
- Volkswagen management and the IG Metall union are in dispute.
- What
- Volkswagen plans further job cuts and wants to discuss transfer companies; the union opposes the proposal and disputes the cancellation of collective agreements.
- When
- The dispute was reported on 23 October 2026. Talks are scheduled for 24 November and 15 December 2026.
- Where
- The dispute concerns Volkswagen employees in Germany; talks are scheduled in Emden and Zwickau.
- Why
- Volkswagen says its economic situation has worsened and it needs to cut labour costs. IG Metall says the transfer-company proposal lacks a sound legal basis and could shift costs to taxpayers.
Volkswagen management
IG Metall
Job cuts and savings
Volkswagen management
Volkswagen says the further reductions are needed because its economic situation has worsened and it must act quickly.
IG Metall
IG Metall objects to more job cuts and says the company should honour its commitment to protect jobs and sites.
Transfer companies
Volkswagen management
Volkswagen wants to discuss publicly funded transfer companies as an option for affected workers.
IG Metall
IG Metall calls the proposal a breach of collective bargaining commitments without a sound legal basis and warns of costs falling on taxpayers.
Collective agreements
Volkswagen management
Volkswagen cancelled 10 agreements, which are due to expire on 31 December 2026.
IG Metall
IG Metall views the cancellations as a breach of trust and is demanding their withdrawal, according to Bloomberg HT.
Volkswagen cancelled 10 collective agreements, setting them to expire on 31 December 2026.
Volkswagen announced plans for a further 12,000 job cuts by 2030 and proposed discussing transfer companies after a crisis meeting.
Collective bargaining talks are scheduled to begin in Emden.
A second round of talks is scheduled in Zwickau.
The peace obligation is due to end, after which warning strikes and other industrial action may be possible if there is no agreement.
- Further planned cuts
- 12,000 jobs at Volkswagen’s core brand by 2030
- Previously announced cuts
- More than 35,000 jobs
- Collective agreements
- 10 cancelled, due to expire on 31 December 2026
- Employees covered
- Around 130,000 in Germany, according to Bild and t-online
- First scheduled talks
- 24 November 2026 in Emden
10 sources
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What people are saying
Wir haben keine Zeit zu verlieren. Seit dem Zukunftstarifvertrag 2024 hat sich die wirtschaftliche Situation drastisch verschlechtert.
Bevor die Beitragszahler einspringen, sind die Aktionäre in der Pflicht
der größer werden könnte als alles das, was dieser Konzern jemals erlebt hat.
Riesenaffront