Key facts
- Germany's IG Metall union is demanding Volkswagen commit to its 2024 labor agreement.
- The union fears a recent turnaround plan could lead to mass job losses.
- IG Metall members invoked a legal clause from the December 2024 deal.
- Volkswagen's turnaround plan reportedly involves doubling layoffs to 100,000 and cutting production.
- The 2024 deal included 35,000 layoffs and wage concessions, but secured job and investment guarantees.
- IG Metall is prevented from striking until the end of the year under existing agreements.
Germany's powerful IG Metall union is demanding that Volkswagen reaffirm its commitment to a labor agreement struck in December 2024, citing concerns that the automaker's recent turnaround strategy could lead to significant job losses. Union representatives invoked a legal clause from the 2024 deal, signaling an escalation in tensions between management and labor.
Volkswagen's proposed overhaul includes plans to roughly double layoffs to 100,000 and drastically cut production, according to reports. The union fears these measures could undermine the job and investment guarantees secured in the 2024 agreement, which was reached after mass walkouts and resulted in 35,000 layoffs and wage concessions but prevented immediate plant closures.
IG Metall is currently prevented from striking until the end of the year due to existing labor agreements. Tensions have resurfaced as Europe's largest carmaker grapples with intense competition from Chinese manufacturers, rising tariff payments, and high production costs in Germany. Works council chief Daniela Cavallo criticized management's focus on German manufacturing costs and called for broader EU policies, such as expanded tariffs on Chinese plug-in hybrids and local content rules, to protect the industry.