Volkswagen’s recent decision to terminate several collective agreements effective December 31, 2026, sets the stage for contentious negotiations with the IG Metall labor union as they revisit the 2025 labor deal. This strategic move allows Volkswagen to renegotiate cost terms while excluding job guarantees. Despite the rejection of IG Metall’s request for a 5% pay increase based on rising overhead costs, the existing agreements will remain until new terms are established, with discussions slated to resume in late October.
Arne Meiswinkel, Chief Human Resources Officer at Volkswagen, emphasized the significant economic shifts affecting the automotive industry, particularly the competitive pressure from Chinese manufacturers in Europe. He stressed the urgency of implementing the Group Target Picture 2030 measures to enhance Volkswagen’s competitiveness in a rapidly changing market landscape.
For further details, you can refer to the official press release.
