Volkswagen Workers Threaten Strikes Over Cancelled Wage Agreements

Volkswagen workers in Germany have threatened industrial action from January unless the automaker reverses its decision to terminate wage agreements by the end of October. The dispute intensified after the company cancelled almost all wage deals with its German workforce in September, putting established labour protections, including working hours and holiday pay, up for renegotiation. Union representatives are demanding that management withdraw the termination notice before the deadline.

IG Metall, Germany’s largest industrial union, warned that failure to meet its demand could trigger widespread labour action. The union argues that Volkswagen is backing away from commitments made under a landmark agreement in late 2024. Meanwhile, the company is facing mounting financial pressure from intense competition with Chinese automakers, tariff costs and the expensive transition to electric vehicles. Volkswagen has announced plans to cut 100,000 jobs and could close up to four plants in Germany as part of a major restructuring.

The company’s works council has also alleged that Volkswagen’s executive board plans to freeze salaries for around 660,000 employees worldwide until 2030. Works council chief Daniela Cavallo called for management to work with employee representatives to find a solution. Negotiations over German wage agreements are expected to begin by early December, although the union has proposed November 24 as the starting date. A possible option under discussion could involve retraining affected workers and helping them secure employment outside Volkswagen.

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