Key facts
- Unions will prepare for industrial action if Volkswagen does not row back on wage deal cancellations.
- Volkswagen terminated 10 of 13 collective agreements for 127,000 German employees effective December 31, 2026.
- The company is pushing ahead with restructuring to cut costs amid competition from Chinese carmakers.
Labour leaders at Volkswagen have threatened strikes starting in January if the carmaker does not reverse its recent cancellation of several wage deals by the end of October. Thorsten Groeger of the trade union IG Metall stated that unions would prepare for "industrial action" unless Volkswagen retracts its decision. The current truce that rules out strikes at the automaker expires on January 1, 2027. Volkswagen terminated 10 of 13 collective agreements for 127,000 German employees, effective December 31, 2026, as part of a restructuring plan to cut costs by €10 billion by 2030 amid pressure from Chinese competition. The terminated contracts include the umbrella wage agreement for approximately 100,000 workers at its main German plants.