Volkswagen cancels wage deals, raising prospect of January strikes

  • Volkswagen plans to terminate several wage agreements with IG Metall by December 31, 2026.
  • The union agreement includes 50,000 German job cuts by 2030 and billions in annual savings.
  • The 2024 labor agreement covering guarantees and investment remains unaffected.

Volkswagen plans to terminate several wage agreements with IG Metall, intensifying a dispute over its restructuring in Germany and raising the possibility of strikes when a current truce expires on January 1. The agreements are due to end on December 31, 2026, while the landmark 2024 labor deal covering job guarantees and investment at certain German plants remains unaffected. Volkswagen's broader cost-cutting program for 2025 and 2026 follows an agreement with unions that includes 50,000 job cuts in Germany by 2030 and billions of euros in annual savings. The group, which includes Volkswagen, Audi and Porsche, faces union opposition as it considers further layoffs and possible plant closures amid pressure from Chinese automakers and high German manufacturing costs.

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