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A “Christmas miracle”: IG Metall announces an agreement with Volkswagen to avoid layoffs

This article was originally published in German

According to the IG Metall union, the threatened VW sites have finally been secured. Redundancies, factory closures and wage cuts were avoided.

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After more than 70 hours of marathon negotiations, the IG Metall union reached an agreement with the management of the automobile group. The result not only ensures sustainable investments in the future of the car manufacturer but also creates prospects for staff and their families, according to a press release from the union.

The main points of the agreement are that the closure of entire sites was avoided, as were economic layoffs and attacks on monthly salaries. VW had notably demanded an immediate and flat-rate reduction in wages of 10 percent.

Economic layoffs are therefore excluded until the end of 2030. If no follow-up agreement is concluded at the end of this period, the company will have to pay one billion euros to its employees.

IG Metall also succeeded in ensuring that the collective agreement for the metal and electrical industry was not dissociated from the company.

In addition, the parties to the collective agreement agreed on a revision of the decades-old remuneration system.

In previous weeks, around 100,000 employees had protested against plans to reduce the VW board of directors during two days of warning strike on Volkswagen sites. Without this massive participation, it would not have been possible to prevent the management board from implementing its drastic savings plans, said the IG Metall union.

Chairman of the Central Works Council of Volkswagen AG, Daniela Cavallo, commented: “No site will be closed, no one will be made redundant for economic reasons and our internal rate will be guaranteed in the long term. With this triptych, we have obtained a solid solution in very difficult economic conditions.”

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