VW Labor Dispute: Here's the Roadmap for the Coming Weeks

As the battle over stricter cost-cutting measures intensifies, Volkswagen is heading into a tough winter. The automaker plans to cut jobs on a large scale and save billions. The IG Metall union is mobilizing in response. Negotiations on one of Germany’s largest company-wide collective bargaining agreements are set to begin in a month. Here’s an overview of the key questions and answers:

When do the negotiations begin?

The first round of negotiations is scheduled for November 24 in Emden. The next round is planned for December 15 in Zwickau. This is what the automaker and IG Metall have agreed upon. VW has plants in both Emden and Zwickau whose futures are uncertain. “Collective bargaining negotiations belong where the future of the locations is at stake,” said Thorsten Gröger, IG Metall’s district director for Lower Saxony. A location close to the executive suite in the brand’s high-rise building in Wolfsburg is the wrong place for this. In the union’s view, negotiations should therefore also take place in Hanover.

How many people are affected by the collective bargaining dispute? 

The VW in-house collective bargaining agreement applies to approximately 130,000 employees at the Braunschweig, Chemnitz, Dresden, Emden, Hanover, Kassel, Salzgitter, Wolfsburg, and Zwickau locations. Volkswagen AG comprises the core brand as well as Volkswagen Commercial Vehicles, the components division, and corporate offices.

What does VW management hope to achieve?

The company’s goal is to reduce costs as quickly as possible. This is intended to make Volkswagen more resilient in the face of international competition and is part of the “Future Plan 2030,” which aims to get the entire Group back on track. In addition, the automaker intends to negotiate additional socially responsible workforce management measures, including transfer companies.

This is because Volkswagen AG plans to cut another 12,000 jobs by 2030—in addition to the previously agreed-upon reduction of 35,000 jobs by the end of the decade. This will also be part of the negotiations. The job cuts are to be carried out in a socially responsible manner; according to VW, the company intends to maintain employment security through the end of 2030.

It remains to be seen what else Volkswagen hopes to achieve. The company has terminated ten collective bargaining agreements, either in whole or in part. These agreements include provisions on working hours, vacation days, and allowances. According to dpa information, the specific changes the company intends to make will not be presented until the negotiations begin. 

Arne Meiswinkel, Chief Human Resources Officer of the core VW brand, stated: “We need to discuss competitive labor costs as well as issues such as a willingness to embrace change and more flexible workforce deployment.”

What does IG Metall stand for?

Even before the collective bargaining agreements were terminated, IG Metall had demanded a five percent pay increase for VW employees, citing inflation as one of the reasons. They had already endured significant cutbacks in recent years. VW employees last received a pay raise in May 2024. However, prices have also risen for them.

In light of the terminations, the union intends to explore further options. “We wouldn’t have touched the framework collective bargaining agreement on our own. Now it’s out in the open,” said Gröger. Works council members, union representatives, and employees know exactly where the collective bargaining framework could be improved. “The relevant clauses have already been compiled.”

As examples, he cited an extension of the partial retirement program or the question of how far job security measures could be extended. The union intends to present a plan for Volkswagen’s future “in due course.”

How long will the talks last?

That cannot be predicted. The talks are comprehensive; there are many complicated and far-reaching issues on the table. Presumably, the negotiators will not be able to ignore the future of the threatened VW plants either. Everything is interconnected, according to sources within the company. While some at VW are still hoping for a quick resolution, they are also bracing for warning strikes.

By way of comparison: Difficult issues had already been hotly debated back in 2024. The compromise ultimately called for the elimination of tens of thousands of jobs. In addition, bonus payments and allowances were cut, and pay raises were put on hold. In return, VW agreed to avoid layoffs for operational reasons and plant closures—and pledged investments and new products for German locations. Achieving this required—under significantly better economic conditions—five rounds of negotiations and warning strikes. The final round was a week-long negotiation marathon shortly before Christmas. 

There are strong indications that the negotiations will drag on into 2027. And even after a possible compromise, things could get complicated again. After all, the members of IG Metall must approve the outcome. “They have the final say,” it was said.

Is an unprecedented escalation looming?

Listening to Gröger, the head of IG Metall in Lower Saxony, it already sounds like a winter storm: The mood among the workforce has reached a boiling point. “Everything points to a confrontation that could be bigger than anything this company has ever experienced.” Preparations are being made for an escalation—not because they want to, but because they have to. “We’re not looking for conflict, but we’re prepared,” he said. 

The obligation to maintain peace ends on December 31.