The VW Group has terminated several collective labor agreements in Germany, including a guarantee that protected workers from dismissal for company-related reasons until 2029.
According to the German press, the company notified the IG Metall union on Tuesday of the termination of the collective employment guarantee agreement, which has been renewed since 1994 and excluded dismissals for operational reasons.
This agreement expires at the end of the year, and dismissals will thus be possible starting in July 2025, unless the union and the company reach a new agreement before that date, as reported by “Automotive News Europe”.
According to VW, the measures aim to reduce costs. “We need to put VW in a position to reduce costs in Germany to a competitive level so that we can invest in new technologies and new products with our own strength”, stated the human resources director, Gunnar Kilian.
Meanwhile, the workers’ committee stated that it will defend itself “fiercely against this historic attack” on their jobs, according to the German daily “Spiegel.”
With this measure, the VW Group takes another step towards tightening its cost-cutting program, aiming for at least €10 billion by 2026. It is worth noting that VW recently admitted for the first time in its 87-year history that it may close factories in Germany.
The decision by VW could potentially impact a vehicle production unit and a components factory in Germany, according to the company’s workers’ council.
