VW terminates collective agreements – IG Metall warns of attacks on employees

The termination of collective agreements - that sounds like the next level of escalation in the VW crisis. IG Metall speaks of a “bad foul” and a “shameless attempt to reach into the employees’ wallets.” But the step doesn't come as a complete surprise: Volkswagen has to make massive savings. This can involve cutting jobs and closing plants. And about collective agreements.

These collective agreements must now be renegotiated. VW does not say how many contracts are affected. The union, on the other hand, speaks of ten individual agreements - from the important collective agreement to the collective training agreement.

It's about decades-old achievements

In the coming months it will probably be about the working hours of VW employees, days off and special payments. But also about so-called classifications. This means which activity is paid and how. Simply put: In the end, it's always about money. VW wants to cut the deal, IG Metall wants to preserve the achievements of the past decades.

At the end of 2024, the union and VW management fought a real collective bargaining battle - with hours of discussions and night meetings in a hotel in Hanover. In the end there was the so-called “Christmas miracle”: the employees supported the socially acceptable reduction of up to 50,000 jobs and other cuts. In return, Volkswagen offered a job guarantee until the end of 2030.

“Seriously tightened” environment

Volkswagen expressly emphasizes that this job guarantee still stands. But much else in the VW world is being put to the test. The company justified the termination of the collective agreements on December 31st with poor competition, for example due to growing competition from China. The economic environment has become “seriously worse,” said Human Resources Director Arne Meiswinkel.

The endangered German plants in Hanover, Emden, Zwickau and Neckarsulm are not directly subject to collective bargaining.

Works council speaks of “blackmail”

VW works council boss Daniela Cavallo sees the company's course as blackmail: Volkswagen is threatening to close locations in order to push through savings elsewhere. The works council and IG Metall have announced massive protests for the coming weeks.

VW's peace obligation ends at the turn of the year. Then strikes are also possible. The only way out is for both sides to move towards each other in collective bargaining. IG Metall and the works council also know that the situation at Volkswagen is serious.