VW and IG Metall strike deal: Job security amid cuts
After lengthy negotiations, the German trade union IG Metall and the Volkswagen (VW) group's management agreed on Friday. According to the dpa agency, the agreement includes, among other things, the maintenance of all plants and a job guarantee until 2030. Simultaneously, VW plans to eliminate more than 35,000 jobs.
The portal tagesschau reported that in exchange for maintaining jobs, VW employees are to forgo pay rises in the coming years and agree to reduced bonuses.
According to Volkswagen, the reduction of more than 35,000 jobs by 2030 will be carried out in a socially responsible manner.
Thomas Schaefer, the head of the Volkswagen brand, explained that the negotiations focused on three main priorities: addressing surplus production capacity in German plants, lowering labour costs, and bringing development expenses down to a competitive level.
Schaefer added that "real solutions were achieved for all three issues." Daniela Cavallo, the chairwoman of the VW works council, was quoted by the Tagesschau portal as saying that a "solid solution" was reached under challenging economic conditions.
Cavallo highlighted that while the collective agreement includes concessions beyond just monthly income, these are offset by the guarantee of preserving all jobs through solidarity. He also pointed to the new job security measures until the end of 2030 and stressed that management cannot implement changes at Volkswagen without employee support.
Olaf Scholz: A good solution
The Chancellor of Germany referred to the agreement as a positive and socially considerate resolution, acknowledging that these are challenging times for Volkswagen employees, according to Olaf Scholz.
The agreement reached on Friday concludes the protracted dispute between the Volkswagen group and the IG Metall trade union, which represents Volkswagen employees. The union advocated for wage increases while the company demanded wage reductions and no raises over the next two years. Volkswagen operates ten factories in Germany, with six located in Lower Saxony, three in Saxony, and one in Hesse, as reminded by the portal tagesschau.
