Volkswagen plans wage freeze through 2030 in assault on workers

Volkswagen is forcing through a severe escalation against its workforce, ordering global wage freezes across the entire corporate group through 2030. According to reports from taz and Tagesschau, the executive board instructed human resources managers worldwide to implement zero rounds, freezing current pay levels and suspending all wage increases starting from early October. The European and World Works Council informed the workforce of the plans via the intranet, confirming details from an internal paper titled Group Target Picture reported by the Süddeutsche Zeitung.

This corporate offensive directly targets the living standards of more than 660,000 workers globally. In our assessment, this unprecedented move is a blatant assault on working-class purchasing power and a calculated attempt to smash collective bargaining strength. Volkswagen refused to comment on the reports when contacted by ARD's finance editorial team and taz, with a company spokesperson dismissing the information by stating they do not comment on speculations and pointing instead to upcoming negotiations.

The plans break fundamentally with established practices. As taz and Tagesschau report, personnel cost budgets at Volkswagen have traditionally always included an inflation adjustment and factored in regular collective wage increases. The new directive not only halts basic wage increases but also opens the door to cuts in variable remuneration, special payments, and additional benefits, according to Tagesschau.

The labor side is sounding the alarm over the impending destitution of industrial workers. The IG Metall warns that these measures will trigger real-wage losses of at least ten percent if the corporate plans are realized. In our view, forcing workers to absorb years of inflation without compensation while corporate bosses protect their profits is class warfare from above. The European and World Works Council branded the measures absurd and unrealistic, warning that the plans would meet with fierce resistance from the workforce.

This wage freeze directive acts as a chilling precursor to upcoming labor conflicts. Volkswagen recently terminated almost all collective bargaining agreements ahead of negotiations expected to begin in late November, as reported by taz and Tagesschau. These talks will cover both the in-house VW tariff and the broader metal and electrical industry sector tariff affecting subsidiaries like Audi, MAN, and Porsche. Against the backdrop of these freezes, IG Metall is demanding a five percent pay increase.

The broader picture reveals an aggressive restructuring agenda aimed at maximizing extraction at the expense of labor. Alongside the wage freeze, the corporate board plans to slash 50,000 jobs worldwide on top of previous downsizing plans, while the long-term future of plants in Emden, Hannover, Zwickau, and the Audi site in Neckarsulm remains open beyond 2031, according to taz. The Works Council pointed out that personnel costs make up only a fraction of turnover costs, exposing the executive board's austerity push as an ideological attack on labor rather than an economic necessity. With the employer side yet to officially submit their formal demands for the upcoming tariff negotiations, the workforce and the union are bracing for a brutal confrontation over the future of their wages and jobs.

This piece was generated automatically by an AI model from the sources listed below. It has not been reviewed by a human editor.

Sources

• Mitteilung der IG Metall: VW will Gehälter bis 2030 einfrieren — taz
• Volkswagen will offenbar Gehälter einfrieren — Tagesschau