Volkswagen terminates almost all collective wage agreements in Germany

In an effort to cut costs, automaker Volkswagen terminated most of its collective wage agreements in Germany. This could reignite disputes with employee representatives. DW has more.

Volkswagen terminates almost all collective wage agreements

German automaker Volkswagen has terminated most of its collective wage agreements in Germany, potentially renewing bitter disputes with employee representatives as the company seeks to cut costs.

Following a meeting with employee representatives in Hanover on Wednesday, the company announced that various provisions in the agreements would need to be adjusted in light of cost pressures.

By terminating the agreements by December 31, 2026, Volkswagen aims to open up room for negotiation. The employment security provisions agreed upon in 2024 and set to last until the end of 2030 will not be affected.

German union leaders have expressed their opposition to Volkswagen, accusing the company of declaring "war" on its staff and threatening strikes in response.

"This is a foul blow against the workforce and once again a shameless attempt to reach into employees' pockets," said IG Metall union official Thorsten Gröger.

Meanwhile, VW works council chair Daniela Cavallo predicted a "bitter dispute at the turn of the year."

Earlier this month, the carmaker and unions reached an agreement to eliminate a total of 100,000 jobs across the entire 10-marque group by the end of the decade. This is the largest restructuring in the history of the global auto industry.

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