Volkswagen is set to begin a new round of collective bargaining talks on Thursday, as the company faces mounting pressure to reduce costs and prevent plant closures. The works council and IG Metall trade union have proposed a range of measures, including salary cuts and the creation of a future fund. The aim of these proposals is to allow for flexible reductions in working hours without resulting in job losses.
The labor groups have demanded that the job security agreement, which was canceled by Volkswagen in September, be reinstated. This reinstatement would apply not only to the six plants in western Germany but also to the three factories in Saxony. The agreement would protect workers from redundancies due to operational reasons. IG Metall district manager Thorsten Gröger believes that these proposed changes could save around 1.5 billion euros in labor costs.
The outcome of these negotiations remains uncertain, as it is unclear whether Volkswagen will accept the proposal. While the idea of putting future wage increases into a fund instead of paying them out appears to be a compromise, it could be seen as contradictory to the company’s previous demand for billions in savings and plant closures. Volkswagen’s Executive Board has expressed caution, emphasizing that any financial proposals would need to be carefully evaluated.
The union and works council have adopted different communication strategies ahead of the talks. IG Metall’s Gröger has warned of potential massive resistance if no agreement is reached, while VW Works Council Chairwoman Daniela Cavallo has called for a more moderate approach, presenting the proposal as a “master plan” to ensure the company’s long-term viability. She also suggested that management should forgo bonuses and contribute them to the proposed fund.
The current mandatory labor peace agreement expires at the end of November, and if no agreement is reached, strikes or other labor actions at Volkswagen could begin as early as December 1.
