VW faces January strike threat over wage dispute

Volkswagen is facing the prospect of strikes from January after labour leaders warned they will escalate industrial action unless the automaker reverses the recent cancellation of wage and labour agreements by the end of October. IG Metall’s chief negotiator Thorsten Groeger said the company has been given until the end of October to withdraw its notice terminating labour agreements in Germany. If it does not, unions plan to launch a large-scale process that would open the way for industrial action once the current truce — which rules out strikes until January 1, 2027 — expires.

A truce between the company and unions currently rules out strikes at Volkswagen until January 1, 2027. Groeger has stressed that management should mark this date clearly, as it will remove the formal barrier to strikes at Volkswagen plants. Labour leaders have framed the deadline as an ultimatum tied directly to the company’s recent labour policy decisions.

The dispute intensified after Volkswagen terminated almost all wage deals with German workers last month. This move put long-standing labour standards, including working hours and holiday pay, up for renegotiation. Wage negotiations in Germany are required to begin by early December at the latest, and IG Metall is calling for talks to start on November 24.

Labour representatives argue that Volkswagen is reneging on commitments made in a landmark agreement in late 2024. The company has stated it is pursuing all available options to cut costs and safeguard its competitiveness. Volkswagen has declined to comment on specific cost-cutting and restructuring measures it may adopt during the upcoming wage negotiations.

Volkswagen’s works council has said that the company’s executive board plans to freeze the salaries of 660,000 employees worldwide until 2030. This proposed salary freeze would extend well beyond the current round of German wage talks and adds to concerns among workers about long-term compensation and job security at the group.

Works council chief Daniela Cavallo has highlighted that some operating conditions for the company have changed, but also noted that many were foreseeable. She has called on Volkswagen’s management board to work with employee representatives to find a solution, underscoring the pressure on leadership to balance cost-cutting with existing labour commitments.

Alongside the labour dispute, Volkswagen is planning a large restructuring that includes cutting 100,000 jobs and potentially closing up to four plants in Germany. These steps would amount to the company’s biggest overhaul to date, reflecting efforts to respond to rising competition, tariff costs and the transition to electric vehicles.

One option being discussed for affected workers is the establishment of a transfer company supported by the federal employment agency. Such a structure would be intended to retrain staff and help them find new jobs outside Volkswagen. These restructuring plans form the backdrop to the current labour conflict and heighten the stakes of the wage and agreement negotiations set for the coming months.