Germany’s IG Metall union is demanding a clear commitment from Volkswagen that it will uphold a major wage and employment agreement reached in 2024, amid concerns that the carmaker’s latest restructuring plans could undermine the deal.
Union members voted on Friday to invoke a legal clause in the agreement, according to IG Metall representative Thorsten Groeger.
The move escalates tensions between Volkswagen management, workers and state stakeholders over plans to significantly reduce production and potentially double planned job cuts to about 100,000.
The 2024 agreement followed mass strikes and included around 35,000 job cuts while helping prevent immediate plant closures and providing certain employment and production guarantees. It also includes a strike truce lasting until December 31, 2026.
Works council chief Daniela Cavallo said the uncertainty over Volkswagen’s plans could no longer continue for workers.
Tensions have increased as CEO Oliver Blume pushes an overhaul that includes possible plant closures early next decade, while Volkswagen faces strong Chinese competition, tariffs and high production costs.
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