- Volkswagen discontinues collective bargaining agreements – potential layoffs beginning July 2025
Volkswagen has officially ended the job security agreement that's been in effect since 1994. The company has informed the union that this contract will end by year's end, permitting potential workforce reductions to commence in July 2025. Besides the job security agreement, various other agreements have also been called off, such as the apprenticeship guarantee and standards for temporary work. As per internal sources, the board of directors had previously discussed and agreed to terminate these contracts.
The company is eager to engage in talks with the union and works council to compose a new agreement prior to the employment security agreement's expiration in mid-2025. In the words of Personnel Director Gunnar Kilian, "This timeframe allows us to collaborate with employee representatives to devise solutions that will transform Volkswagen into a sustainable and competitive force in the industry's future."
Kilian also mentioned, "The current climate is creating uncertainty. By developing reliable prospects for our company as early as possible, we can alleviate this uncertainty." The wage negotiations for VW employees, originally scheduled to commence in October, will now be advanced and broadened to include the recently discontinued agreements. This proposal was previously proposed by the IG Metall union.
The Works Council Stands Firm
Over a week ago, Volkswagen publicly declared that it would sever the long-standing job guarantee and no longer rule out plant closures. However, the company had not specified a date until now. Since then, the works council and IG Metall have been vehemently opposed to these plans.
As stated by Works Council Chairwoman Daniela Cavallo, "The company has kept its threat, which we've been anticipating for days." She further reiterated her opposition to the plans, asserting, "We will fiercely resist this historic assault on our jobs. There will be no forced layoffs under our watch."
The union and the works council, including Chairwoman Daniela Cavallo, have expressed their strong opposition to the decision made by Volkswagen to end the job security agreement. The Commission, a likely body responsible for negotiating new agreements, will soon engage in talks with the company to compose a new agreement before the current one expires.
