Volkswagen AG and IG Metall agree to open negotiations on job cuts and labor costs
Volkswagen AG and IG Metall have agreed to open negotiations after both sides invoked a reopener clause, with the carmaker pressing for lower labor costs and socially responsible workforce reductions.
- More than 35,000
- 12,000
- Around EUR 20 billion
- Around EUR 11 billion
What Happened
Volkswagen AG and IG Metall have agreed to open negotiations — a second revision talk — after both sides invoked the reopener clause in the collective bargaining agreement for the future in September, citing significantly deteriorated economic conditions. That agreement expressly provides for the process, giving the parties the opportunity to discuss adjustments. At the end of September, Volkswagen AG additionally gave notice to terminate ten collective agreements in accordance with the applicable notice periods, creating a framework for negotiations on the cost savings the company says it needs to improve competitiveness. The company says it remains committed to the collective bargaining agreement for the future, including its job security provisions, despite what it calls a challenging and strained situation.
Volkswagen AG and IG Metall conclude the Zukunft Volkswagen agreement, committing to a socially responsible reduction of more than 35,000 jobs at Volkswagen's German sites by 2030.
The company and IG Metall both invoke the reopener clause in the collective bargaining agreement for the future, against the backdrop of significantly deteriorated economic conditions.
A Supervisory Board meeting sets the course for a concept, compatible with the Target Picture, for a sustainable and competitive European production structure.
Volkswagen AG gives notice to terminate ten collective agreements in accordance with the applicable notice periods.
Deadline, in line with the September 3, 2026 Supervisory Board outcome, to develop the concept for a sustainable and competitive European production structure.
“We have no time to lose. The economic situation has deteriorated dramatically since the collective bargaining agreement for the future was concluded in 2024. This creates an urgent need for action. We have to future-proof Volkswagen AG. Only an economically successful company can provide secure jobs over the long term. We need to discuss competitive labor costs, a willingness to embrace change and more flexible workforce deployment. In this situation, our employees rightly expect swift clarity and, above all, viable solutions. For this reason, we welcome the start of negotiations now.”
- Socially responsible reduction of more than 35,000 jobs at Volkswagen's German sites by 2030
- An additional reduction of 12,000 positions at Volkswagen AG by 2030, also to be achieved through socially responsible means
- Maximum use of voluntary departure options.
- Establishment of transfer companies eligible for public funding, which employees can join to explore new opportunities in the labor market, for example by gaining additional qualifications.
- A reduction in labor costs.
- Broader socially responsible workforce measures, managed so that employees get prospects, choices and support for their next steps.
The specific details of these measures will be the subject of the negotiations now agreed with IG Metall. The company frames the package inside the Volkswagen Group's Future Plan 2030, a transformation program setting out how the Group and its subsidiaries adapt to changing conditions in the automotive industry, with a leaner product portfolio focused on customers and markets and an organization realigned accordingly. Its Operational Excellence initiative aims to reduce costs along the entire value chain by around EUR 20 billion by 2030, and an additional reduction in overhead costs of around EUR 11 billion is planned. Competitive labor and personnel costs are described by the company as an important lever for achieving the objectives of the Future Plan 2030. Further measures are needed, in the company's view, so that it can continue to act within the framework of the already agreed job reductions.
Previously from Volkswagen Group
At the end of September 2026, Volkswagen AG and IG Metall opened revision talks, with the company giving notice to terminate several collective agreements effective December 31, 2026 while job security provisions stayed excluded from that step. That earlier move set up the further negotiating round now being opened.
Background drawn from MotorClaw's earlier coverage of Volkswagen Group's official releases.
Why this matters
The talks will shape how Volkswagen AG delivers job reductions it has already committed to: more than 35,000 posts at its German sites by 2030, plus an additional 12,000 positions at Volkswagen AG. That makes the negotiations central for the company's German workforce, for IG Metall and for the plants and suppliers tied to them. Lower labor costs are one lever the company cites for its Future Plan 2030, which targets around EUR 20 billion in cost reductions along the value chain.
Terms in This Story
- Reopener clause
- A provision in a labor agreement that lets either side reopen negotiations on specified terms before the contract runs out.
- Collective bargaining agreement
- A contract negotiated between an employer and a union that sets pay, working conditions and job protections for employees.
- Transfer company
- A temporary organization, often eligible for public funding, that employees can join when leaving a job so they can retrain and look for new work.
- IG Metall
- The industrial union that negotiates collective agreements with Volkswagen AG on behalf of its employees.
Summarised from the linked release; details can be imperfect — always verify against the original source.