Volkswagen will terminate nearly all of its collective bargaining agreements, a decision that will transform labor practices at the automaker. The automaker confirmed the move following reports by German media outlets, stating it will impact 100,000 employees across Germany and take effect on December 31. Under the plan, ten of the thirteen agreements forming Volkswagen’s framework contract, including the master agreement, will be canceled.
Key aspects of the changes include adjustments to bonuses, overtime pay, and holiday arrangements, though Volkswagen has not disclosed specific cuts. The decision comes after discussions about increasing weekly working hours from 35 to a higher total. The new terms are set to take effect in 2027, though it remains unclear whether canceled agreements will be replaced or fully eliminated.
Labor representatives have strongly criticized the announcement. Torsten Gröger, head of the IG Metall union’s regional branch, described it as an attempt to weaken employee compensation. He argued that the cancellations violate Volkswagen’s history of negotiated labor terms and represent a broader challenge to collective bargaining standards. “This is a direct attack on workers’ rights,” Gröger stated, adding that strikes could begin as early as January.
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Daniela Cavallo, leader of Volkswagen’s works council, called the move coercive and pledged resistance. “We anticipate significant conflict at the start of next year,” she said. In contrast, Arne Meißwinkel, the company’s human resources director, defended the decision as necessary to address declining industry performance, stressing the urgency of cost reductions.
IG Metall has initiated new negotiations with Volkswagen, pushing for a 5% wage increase as part of broader discussions. The union also seeks guarantees for major production sites, including Volkswagen’s facilities in Hanover, Emden, and Zwickau, as well as Audi’s plant in Neckarsulm. Volkswagen has not yet responded to these demands.
Earlier this year, Volkswagen considered extending working hours to reduce expenses, though no final decision was made at the time.
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