Auto industry | VW: Attack on tariff standards

At VW the signs point to conflict. Photo: dpa/Julian Stratenschulte The fact that the VW board of directors now wants to terminate numerous collective agreements as part of its broad-based cuts strategy is really audacious. This seems to be thanks for the fact that the union and the works council grudgingly agreed to the controversial job cuts plans.

The workers' side had already accepted the loss of 35,000 jobs in Germany by 2030 as well as cuts in bonuses and allowances during the hard-fought wage agreement in 2024. The fact that the company's management decided against compulsory layoffs and plant closures in return now seems obsolete. The new cuts program approved by the Supervisory Board includes the reduction of 50,000 jobs - this will hardly be possible without layoffs. Four works are also at risk; Closings not excluded.

The board's strategy seems to be working: the complaining about the supposedly poor prospects of Europe's largest car company has already been crowned with success. That's why they're now going one better and attacking the remaining tariff standards. This would completely help the employees to overcome the problems that are aggravated by incorrect management decisions. However, there is no real future concept.

The new development puts massive pressure on the general works council and IG Metall. They believed that by giving in they could prevent the worst. Apparently they are still living in the old days, when social partnership at VW was more than just empty talk thanks to the special features of the company and the legal framework. The board has long since said goodbye to amicable solutions, so the union can only prevent the worst with a hard line. But once you have already given in, it becomes even more difficult to pass the upcoming collective bargaining negotiations.

There's a lot at stake - in the huge company, but also for Germany as a location as a whole. It would be an understatement to say that the workers' side has given out the little finger and the board now wants to take the whole hand. Rather, both hands have been extended and the company management now wants to pull away the legs of co-determination.

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