German Union Demands Volkswagen Honour 2024 Labour Deal

Germany’s IG Metall union is demanding that Volkswagen reaffirm its commitment to a landmark labour agreement reached in 2024, amid growing concerns that the carmaker’s latest restructuring plans could undermine the deal. Union members voted on Friday to invoke a legal clause requiring management to return to talks over the agreement.

The dispute comes as Volkswagen considers significantly deeper job cuts, potentially affecting around 100,000 positions, alongside major production reductions. The 2024 agreement followed mass walkouts and included plans for 35,000 job cuts and wage concessions, while helping prevent immediate plant closures and securing certain employment and investment commitments.

Tensions have intensified as Volkswagen faces strong competition from Chinese automakers, higher tariff costs and elevated manufacturing expenses in Germany. IG Metall has criticised the company’s focus on German production costs and called for stronger European measures to protect the automotive industry. Volkswagen, meanwhile, said it welcomes talks and sees them as necessary to implement the 2024 measures while addressing new challenges facing the sector.

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