The struggle for austerity measures at car manufacturer Volkswagen continues

FAQ Talks with IG Metall VW and the union are fighting for austerity measures As of: October 23, 2026 • 11:12 a.m

Job cuts, rounds of austerity and the threat of factory closures: the mood at Volkswagen is heated, the IG Metall union is threatening strikes from January. Today the top management is speaking to IG Metall. What the crisis meeting is about.

Today's conversation between representatives of IG Metall, the works council and VW management is about a review of the future collective agreement for 2024. The employees had requested the talks in mid-September in order to get clarity about the VW supervisory board's new savings decisions.

After all, VW promised almost two years ago that there would be no redundancies, no factory closures, and no investments and new products for German locations. The employees paid with reduced bonuses and allowances, suspended pay increases and the reduction of 35,000 jobs. Now the question is whether and how VW will keep the promises made in the hard-fought deal. Management had also requested a meeting to explain why the savings agreed at the time were no longer sufficient.

According to the union, in an initial conversation that took place at the end of September, VW expressed considerable doubts about being able to implement the investments in new models and plants agreed in the 2024 financial statements as promised. Lower Saxony's IG Metall district manager Thorsten Gröger said afterwards that they were disappointed and angry. The union now expects answers to a list of questions.

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In view of the problems in the auto industry, Volkswagen's supervisory board agreed on a future plan for 2030 at the beginning of September. This should make VW significantly more profitable. Since then, management has had a mandate to restructure the company and save billions. The goal: By 2030, out of every 100 euros in sales, nine euros should remain an operating profit. Most recently it was 3.80 euros.

The board wants to cut 50,000 jobs worldwide in the next few years - in addition to previous reduction programs. The brands should plan this out. Half could come from Germany. In addition, the future of the VW plants in Emden, Hanover and Zwickau as well as the Audi site in Neckarsulm beyond the years 2031 to 2034 is open.

In addition, at the end of September, ten collective agreements were fully or partially terminated as of December 31, 2026 - including the general collective agreement, which covers, among other things, working hours and vacation. Other contracts regulate, for example, the classification into pay groups and allowances. However, not all of the regulations contained therein will disappear immediately. The employees of Volkswagen AG in Germany are specifically affected; the company tariff applies to around 130,000 people.

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VW wants to improve its competitiveness and reduce costs. From the company's perspective, various regulations in the contracts need to be adjusted in view of the current cost pressure, it said. According to Arne Meiswinkel, the HR director for the core brand VW, the economic environment has become seriously worse for the industry and therefore also for VW.

"These market changes are structural and profound. Among other things, Chinese manufacturers are pushing into Europe with cheap exports," he said. According to Meiswinkel, the measures from the future plan must be implemented quickly and consistently.

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A mega collective bargaining may be imminent at VW. According to the company, the termination of the collective agreements should open up room for negotiation. The austerity measures in the future plan are also likely to be put on the table there. However, it is still unclear which changes to the contracts Volkswagen specifically wants to achieve.

At the same time, IG Metall is demanding more money, specifically five percent. It is considered unlikely that all of these strands will be negotiated separately. And the negotiators are unlikely to be able to ignore the future of the threatened VW plants. The talks must begin at the beginning of December at the latest.

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In contrast to the collective bargaining round in the metal and electrical industries, VW's peace obligation does not end until December 31st. After that, strikes are possible - and not unlikely.

Negotiator Thorsten Gröger, head of IG Metall Lower Saxony, announced today that he would go on strike after the peace obligation expires if the top management does not withdraw the demands. Management can mark December 31st on their calendar. "We're giving the company until the end of October," he added, "otherwise a huge machine will roll in to prepare for a labor dispute at VW."

Gröger sees the layoffs as a deep break with VW culture and a declaration of war on the workforce. Works council boss Daniela Cavallo also expected a “violent dispute at the turn of the year”.

This topic in the program: The First | daily news | Oct 23, 2026 | 8:00 a.m