Volkswagen terminates most in-house collective agreements – IG Metall calls it a "dirty foul"

"Mit der Kündigung der Tarifverträge stellt VW tarifliche Zulagen, Ausbildungsübernahmen sowie Schutzregelungen für ältere und gesundheitlich eingeschränkte Beschäftigte infrage", the union stated. It announced that it would inform members shortly about further steps and prepare for possible negotiations or industrial action.

Volkswagen's corporate leadership had repeatedly pointed in the past to high costs, the transformation toward electric mobility, and growing competitive pressure from Chinese manufacturers. The termination of the collective agreement comes at a time when the company is also discussing possible plant closures, job cuts, and the future of production sites in Wolfsburg and Hanover. The works council and the union had previously firmly rejected these plans.

Consequences for plants and brands

The background is the conflict that has been simmering for some time over the future of the German plants. Lower Saxony as the anchor shareholder and the state government had repeatedly pressed for the preservation of the sites and employment. The termination of the collective agreement is considered in the union's assessment to be by far the most far-reaching step so far in this dispute.

IG Metall and Volkswagen have been holding talks since the summer over a new in-house collective agreement, which had proceeded without any tangible convergence. With the formal termination, the group is now intensifying pressure on the negotiations. Union representatives interpret the move as a signal that the company wants to push through its own extensive cost-cutting and restructuring measures.

Reactions from politics and the workforce

The effects also concern subsidiaries and brands within the Volkswagen Group. In Lower Saxony, this includes plants and component locations that are closely intertwined with the core facilities in Wolfsburg and Hanover. Collective agreements are also of considerable importance for Audi and other group brands, although these have their own pay structures.

Reactions from politics ranged from restrained to critical. Lower Saxony's economic policymakers pointed to the company's special responsibility toward the Germany as a location and called for a swift return to the negotiating table. Federal politicians see the termination as a signal with explosive potential for industrial relations in the country.

IG Metall now wants to decide on possible strikes through a ballot vote. At the same time, the union is calling for workplace meetings and demonstrations to increase pressure on the group's leadership. VW stated that the termination was "nicht leichtfertig" carried out and expressed openness to talks on a "zukunftsfähigen Tarifvertrag".

Employees and works councils reacted with outrage and uncertainty. In many plants, discussions about plant closures, relocations, and the future of employment flared up anew. The coming weeks are likely to show whether negotiations will be quickly resumed or whether the collective dispute will escalate into an open conflict.