Collective bargaining conflict at VW subsidiary: job security under pressure!

Collective bargaining conflict at VW subsidiary: job security under pressure!

There's a lot going on in the Volkswagen world. The collective bargaining negotiations between IG Metall and the VW subsidiary PowerCo have stalled. After eight tough rounds of talks, the union's patience is at an end. The focus is particularly on job security - an issue on which Volkswagen is currently putting the brakes on. Alina Roß, IG Metall's negotiator, leaves no doubt that the company's blockade stance is making the situation considerably worse. “This is a stress test and we fear an escalation,” she says, making it clear that all the key points developed so far no longer apply.

The state of Lower Saxony, and in particular the Salzgitter location, holds a key position in battery production and Volkswagen's entire e-mobility strategy. IG Metall is therefore calling for binding employment security for all PowerCo employees. “Without security for the employees, a wage deferral is unthinkable,” Roß continued. The union had originally called for a seven percent increase in wages, but is flexible when it comes to the financial side as long as the more important employment guarantees are in place.

The voices from the workforce

The atmosphere among the workforce is also bittersweet. Björn Harmening, the works council chairman in Salzgitter, is pushing for clear commitments from Volkswagen. His message is unmistakable: “The employees are the backbone of this company, and it is high time we recognized that.” Despite the tough negotiations, IG Metall emphasizes the strategic importance of PowerCo for the future of Volkswagen and for the Salzgitter site, which is widely seen as central to Germany's industrial future.

The history here is contradictory. In a comprehensive collective agreement that was reached after more than 70 hours of negotiations, IG Metall and its employees averted plant closures and mass job cuts. More than 100,000 employees have protested against cuts. The collective agreement concluded had, among other things, ruled out dismissals for operational reasons until the end of 2030, which underlined the security of jobs and opened up the opportunity for Volkswagen to make sustainable investments in the future.

What's next?

Now the situation could be called into question again. If there were a break in the negotiations, there would be a great risk that the necessary security elements would no longer be offered. The trust of the workforce will definitely be undermined. Alina Roß and Björn Harmening are facing a real challenge, especially in view of the economic developments in the industry and the upcoming changes caused by e-mobility.

The union is rebellious and makes it clear that it will fight for the rights of employees. “Securing employment is the backbone of a future contract,” concludes Roß. It remains to be seen whether Volkswagen will be aware of its great responsibility and find a constructive way in this collective bargaining dispute in order to create a sustainable perspective for everyone involved.

The coming weeks will be crucial. It will be exciting to see how the negotiations continue and whether IG Metall will manage to enforce its demands. In times when the automotive industry needs to change more than ever, employee safety is a key concern. The workforce is looking intently at the next steps in the negotiations.

News38 reports on the current developments, while IG Metall provides further details about the collective bargaining on its website: IG Metall.