Volkswagen Terminates Collective Bargaining Agreements: What Does This Mean for Employees?

The conflict over VW’s stricter cost-cutting measures is entering the next phase: The automaker wants to cut costs and has therefore terminated 10—the majority—ofthe company’s existingcollective bargaining agreements. They are to be renegotiated. As a result, a tough labor dispute is looming this winter—along with cutbacks for employees. Among other things, an increase in the weekly workweek from 35 to 40 hours without a pay raise is being discussed. Financial losses could also occur starting in January 2027 in cases of hardship if the company, the union, and the works council have not reached an agreement to the contrary—including one regarding new negotiations to be held soon—by that time. Layoffs for operational reasons, however, remain ruled out until the end of 2030. Up to 130,000 Volkswagen Group employees in Germany could be affected by these measures.
Beyond the current collective bargaining terminations, the employer plans—as part of the 2030 Future Plan—to cut 50,000 jobs worldwide in addition to cost-cutting programs that have already been decided upon or are currently underway, and has already obtained approval for this from the VW Supervisory Board.