Volkswagen AG faces another confrontation with its German workforce after IG Metall said the carmaker notified it would terminate 10 of 13 labor pacts when the calendar flips to 2025, which would put compensation, schedules, bonuses and staffing provisions back into bargaining.
IG Metall has set a month-end cutoff for Volkswagen to rescind the move. If it holds firm, the union intends to organize strike action and other industrial measures once the mandatory cooling-off period lapses on Dec. 31. A Volkswagen spokesperson declined to comment right away, adding that the company would release a statement later on Friday.
The union also wants formal negotiations to start Nov. 24, before a Dec. 3 deadline, and says initial discussions should focus on plants with a more uncertain long term outlook.
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The dispute lands squarely in CEO Oliver Blume's overhaul, which aims to cut jobs, shave factory costs and reduce bureaucracy in Germany to free cash for electric vehicles, software and self driving tech. It is also unfolding as Europe's carmakers wrestle with pricey home operations, soft demand and quicker, cheaper Chinese competitors.
It could reopen wounds from a bruising 2024 restructuring battle. According to IG Metall, that agreement is cutting labor costs by roughly €1.5 billion ($1.7 billion) each year, while protecting employees from compulsory layoffs through 2030 and providing future production commitments for Emden, Hanover and Zwickau. More recent talks stopped short of settling the long term status of several German sites.
The union's timeline is tight: start talks Nov. 24 with a Dec. 3 checkpoint, and prepare for action after Dec. 31 if cancellations stand. Gröger said the union will be ready for "all escalation levels" from the start of next year, including potential walkouts in January.
The bottom line: labor uncertainty sits alongside a costly transition to EVs and software. Any disruption to output or added cost pressure at Volkswagen will ripple through margins and guidance, so watch whether the parties enter talks on the union's schedule or dig in.
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