Volkswagen: agreement reached with unions, no layoffs

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The German union IG Metall said it had successfully concluded negotiations with the Wolfsburg company to reduce costs without resorting to mass layoffs

December 20, 2024 (changed December 21, 2024 | 08:30) – MILANO

It was necessary to resort to the first strike of the modern era (2 December), but in the end the parties found a meeting point. The Volkswagen dispute therefore seems headed towards a softer conclusion than expected. The German trade union IG Metall issued a note on December 20, through negotiator Thorsten Groeger, declaring: “We have managed to find a solution for employees at Volkswagen sites that guarantees jobs, safeguards the products in the plants and at the same time allows important future investments”. At the beginning of the confrontation there was a real risk that the company would close factories in Germany, endangering the jobs of thousands of people.

the agreement between Volkswagen and the unions

Some of the first details released after the agreement reached between the German group and the trade union representatives: no factories will be closed in Germany and layoffs against the will of the worker will be excluded until 2030; between now and 2030, there will be 35,000 people leaving work in “socially responsible” ways; there will be no bonuses, however the monthly pay levels will not be affected (the company was asking for a 10% reduction for around 120,000 workers).

What changes in factories

To keep the factories open, the activity will be reduced to five plants: an assembly line in Zwickau will be closed and, in the future, will be converted to the sole production of Audi’s electric Q4-etron model. The compact electric VW ID.3 and the Cupra Born will be moved to Wolfsburg, where the electric Golf will also be produced. The ID.4 will go to Emden, while the current Golf will instead be moved from Wolfsburg to Mexico.



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