VW employees in turmoil: refund demands and bonus frustration at work!

VW employees in turmoil: refund demands and bonus frustration at work!

In the current situation at Volkswagen, there are some heated discussions among employees, especially when it comes to bonus payments and the recent changes to the company collective agreement. Many employees feel they have been treated unfairly after the anniversary bonuses for 25 and 35 years of service to the company were no longer available news38 reported. In return, staggered premium payments were introduced, which were converted into one-off payments: 6,000 euros for 25 years and 12,000 euros for 35 years. This change caused disillusionment, especially when some employees had already received “loyalty bonuses” of over 18,000 euros in December 2024, only to find out in January 2025 that they had to pay this money back.

IG Metall has confirmed the employees' dissatisfaction, as many are affected by the repayments that have been demanded in accordance with the new collective agreement since January 2025. One employee expressed frustration that the bonuses had already been spent and set aside, and it is unclear how many are actually affected by these clawbacks. One case has already ended up before the Kassel district court, where VW was ordered to repay 2,089 euros to the plaintiff. The court ruled that the plaintiff did not have to face retroactive tariff changes, but VW has already filed an appeal against this ruling.

Collective bargaining and employment security

The dispute over bonus payments goes hand in hand with the recent collective bargaining negotiations, which were intensively conducted by IG Metall and the employees. After more than 70 hours of negotiations, a comprehensive collective agreement was reached that averted factory closures and massive job cuts at Volkswagen, as IG Metall announced on its website. Around 100,000 employees protested on two days of warning strikes against the VW board's plans for cuts. The new collective agreement secures jobs until the end of 2030, although redundancies are excluded for operational reasons as long as the agreements remain in force.

The disputes over bonuses also had an impact on the future structure of the company. Volkswagen terminated the employment security that has been in effect since 1994, which means that redundancies for operational reasons will not be possible until July 2025 at the earliest. Important agreements such as the employment guarantee for trainees and regulations for temporary work were also terminated. However, works council leader Daniela Cavallo has emphasized that she will defend herself against dismissals for operational reasons. If an agreement is not reached by June 2025, Volkswagen's costs could rise significantly and the old collective agreement would come into force again.

Perspectives and future planning

In addition to the challenges in collective bargaining, Volkswagen is faced with the need to develop clear future prospects. A permanent pay increase for the subsidiaries was agreed, and training allowances are to be increased by 140 euros per year of training from March 2025. Training positions and positions for dual students are also on the horizon. Volkswagen plans to create a comprehensive basis to both secure existing employees and attract future workers. The goal is to develop a roadmap for plant security at various locations in order to secure the products and value creation in the company in the long term.

From January 1, 2031, the salary scale will be increased by 5 percent. These comprehensive measures are part of a larger plan to secure and stabilize the company and are an attempt to regain the trust of employees.