In the dispute over the VW savings program, the union representatives are relying on a regulation from an earlier collective agreement. In doing so, they want to force the board to come to the negotiating table and threaten to involve the arbitration board if there is disagreement.
In view of the savings plans at Europe's largest car manufacturer, the employee representatives at Volkswagen are insisting on compliance with the 2024 collective agreement and are urging the board of directors to come to the discussion table. Thorsten Gröger, IG Metall's chief negotiator in Lower Saxony, said the union had decided to use a regulation from the December 2024 collective agreement. "We call on the company to come to the table and explain to us how the collective agreement is being complied with." The main focus is on the bindingly agreed investments in new models, future products and modern production processes.
Gröger emphasized that drawing out the clause does not entail termination of the agreement. The talks should take place this quarter. According to the union, if no agreement is reached, the arbitration board can be called upon. Volkswagen has not yet commented on the union's demand.
VW works council boss Daniela Cavallo said that the statements made by the board members at the works meetings had caused even more uncertainty. The workforce in Zwickau and Emden fulfilled their promises, which were made a condition for further vehicle projects in 2024. “This uncertainty cannot continue for our workforce at the locations.” It cannot be the case that a contract is simply brushed aside. “Now the board has to deliver,” said Cavallo.
VW is coming under pressure from competition from China
At the same time, she called on politicians to support the company. She must ensure the framework conditions so that there is fair competition. Many issues relating to the competitiveness of the German economy are currently being dumped on the social partners. “That is a fallacy,” emphasized Cavallo. The car industry competes with Chinese manufacturers who are heavily subsidized in their home market and can therefore charge prices that European manufacturers cannot keep up with.
In December 2024, after months of struggle, employees and the board agreed on a collective agreement. Both sides agreed to cut 35,000 jobs. In return, the board promised, among other things, an employment guarantee until the end of 2030 and models for the Emden, Zwickau and Hanover locations. The contract can be terminated at the earliest at the end of 2030, but contains a revision clause. It states that both sides can request a review meeting once a quarter if the economic conditions have changed. In the event of a dispute, the arbitration board can be called upon.
Volkswagen is currently facing the loss of tens of thousands of jobs. Last week, the supervisory board of Europe's largest car manufacturer surprisingly agreed on a restructuring concept with which the board led by Oliver Blume wants to increase returns to nine percent by 2030. Around 50,000 jobs will be eliminated worldwide, and four German plants are being put to the test. However, a decision as to whether production in the electrical plants in Emden and Zwickau as well as in the commercial vehicle plant in Hanover and in the Audi factory in Neckarsulm should be phased out from 2031 has been postponed.
