Germany: Volkswagen Violates Pact Against Layoffs
Starting 2025, the Wolfsburg giant will be able to reduce its workforce
For Volkswagen, the flagship of German industry for decades, this is an unprecedented move. The Wolfsburg-based manufacturer has torn up a contract with German metalworkers’ union IG Metall that explicitly provided protection for the group’s German employees until 2029. This agreement was reached 30 years ago and has been discussed several times for renewal.
“We have to give Volkswagen the opportunity to reduce costs in Germany to a competitive level so that we can invest in new technologies and new products using our resources,” explains head of human resources Gunnar Kilian, according to Italian news agency ANSA. “This period now offers us the opportunity to find solutions, in collaboration with employee representatives, that will enable us to sustainably position VW in terms of competitiveness and the future.”
On the other hand, there are statements from the president of the works council, Daniela Cavallo, who announced her defense “strongly against this historic attack on our jobs. There will be no layoffs with us.”
In fact, Volkswagen has “freed its hands” for future layoffs that could start from two plants about which management had already expressed doubts in early September. “The economic situation has become even tougher, and new players are investing in Europe,” explained Volkswagen CEO Oliver Blume. “Germany as the headquarters of the corporation is falling further and further behind in terms of competitiveness.”
Other union agreements that have been canceled include those that provided certain protections for interns and fixed-term contracts. And although the autumn of strikes has been announced, Kilian tried to cool things down by explaining that the company’s intention is to strike a new agreement in the coming months.
