VW and IG Metall: salary cuts in the fight for future security!

VW and IG Metall: salary cuts in the fight for future security!

Things are visibly simmering in the heart of the German automotive industry: the VW Group is facing enormous pressure to reduce its costs while remaining competitive. How news38.de reports, IG Metall is planning to equalize salaries across the entire industry with the aim of creating a fair and future-proof pay structure.

A central issue is the planned reduction in the total volume of collective wages by six percent. This measure was raised in the first talks between VW and IG Metall, which took place on November 12th. A new pay system is to be developed by mid-2026, while a pay freeze will come into force from January 1, 2026. In this context, there will be no reclassifications to higher salary levels. The new remuneration system is scheduled to come into force on January 1, 2027, with a transition phase intended to ensure clarity and stability for employees.

Constructive conversations, but significant gaps

The negotiations between the parties are not only met with approval. Arne Meiswinkel, chief negotiator at Volkswagen AG, said that although the talks were constructive, there were still significant gaps in the negotiations. Voices raised show that further collaboration is needed to identify additional financial opportunities that can reduce costs and ensure long-term competitiveness, such as volkswagen-group.com reported.

The employee side has put forward a counter-proposal that signals openness to a financial contribution from employees. The company welcomed this approach, but does not believe it is sufficient in the long term. The aim is to jointly develop a viable solution to invest in a sustainable product portfolio until the 2030s.

Facing challenges

In order to overcome the challenges, excess capacity and factory costs in the German plants must also be discussed. There are different views between the negotiating partners. The next round of negotiations will take place on December 16, 2024, and the number of employees covered by Volkswagen's collective agreement is approximately 120,000 across various plants and subsidiaries.

Volkswagen is committed to securing jobs - a commitment that has been part of the collective agreement since 1994. But the company also feels compelled to take some measures. The plan is to terminate the collective agreement and the “Digital Transformation Roadmap” in order to realign job security in response to economic challenges.

• Volkswagen spricht von einer 10-prozentigen Gehaltskürzung für Mitarbeitende unter Tarifverträgen.
• Ein zukunftssicherer Tarifvertrag soll einheitliche Arbeitsbedingungen schaffen, die unter anderem eine 35-Stunden-Woche beinhalten.
• Weitere Effizienzmaßnahmen umfassen die Streichung von Jubiläumsprämien und des monatlichen Bonus von 170 Euro.

At the same time, Volkswagen has announced that it will offer 1,400 training positions annually, although this number will be adjusted depending on personnel needs. It is also planned to create temporary employment relationships under the sector's standard conditions, while existing agreements that entail higher costs are to be terminated.

The negotiations are about to continue in an exciting way. It remains to be seen what compromises can be found in the interests of all those involved in order to shape the future of the company and its employees.