Volkswagen gives notice on almost all collective agreements
The German carmaker wants to renegotiate employment terms because of rising cost pressures.
Volkswagen has announced that it will give notice on a large proportion of its German collective agreements as of 31 December. The IG Metall trade union and the works council oppose the move, which could trigger a new confrontation over pay and employment conditions from January.
According to IG Metall, this concerns ten collective agreements, including the important framework collective agreement covering working hours, allowances and other employment conditions. Volkswagen itself did not specify an exact number, but said that several agreements needed to be amended because of the economic situation.
The manufacturer points to the deteriorating competitive position of the European car industry. Chinese producers have become more prominent in the European market, while Volkswagen is also working on a major cost-cutting and transformation programme. The group previously announced plans to cut tens of thousands of jobs worldwide.
Giving notice does not mean that all agreements will automatically disappear on 1 January. The contracts remain in force while the notice period runs and the parties must negotiate again. IG Metall says that the job security provision in the 2024 agreement is not affected by this notice and applies until the end of 2030.
From 2027, however, arrangements concerning allowances, training and working hours could become subjects of the negotiations. The union has submitted a wage demand of 5 per cent for the upcoming round. The so-called peace obligation ends on 1 January, meaning that warning strikes could also become possible later in the dispute.
Volkswagen says it wants to create room for negotiation through the notice in order to reduce costs structurally. IG Metall and the works council view the measure as an attack on previously agreed terms and warn of a tough dispute around the turn of the year.
The issue affects more than just Volkswagen’s employees. The company is one of Germany’s largest industrial employers, and the outcome could affect suppliers, regions around factories and the wider debate about Europe’s transition to electric cars. For now, it is especially clear that previous compromises have not restored lasting industrial peace.
One story, several perspectives
What is established
- Volkswagen has given notice on several collective agreements with effect from the end of 2026.
- IG Metall and the works council oppose the move.
- According to IG Metall, the job security provision in the 2024 agreement runs until the end of 2030.
- The new collective bargaining negotiations could lead to industrial conflict from January.
Left
Arguments Workers must not once again be made to pay for strategic mistakes and the transition in the car industry. Previous commitments on job security and co-determination must be respected, and cost savings must be shared fairly between employees, management and shareholders.
Values Workers’ rights, solidarity, income security and strong co-determination.
Consequences Maintaining employment conditions could protect jobs and purchasing power, but could put further pressure on Volkswagen’s cost position.
Centre
Arguments Volkswagen needs room to adapt the company to changing markets, but fundamental employment conditions must be revised through negotiations and with guarantees for job security.
Values Continuity, consultation, predictability and a balance between competitiveness and social protection.
Consequences An agreement could prevent strikes and give factories a future, but would probably require concessions from several parties.
Right
Arguments Competitive pressure from China and high costs in Europe make rapid adaptation necessary. If collective agreements cannot adapt, the viability of factories and jobs will ultimately come under further threat.
Values Competitiveness, entrepreneurial freedom, productivity and financial responsibility.
Consequences Lower labour costs could support investment and production in Germany, but worsening conditions could lead to staff losses and deepen the conflict.
The perspectives describe how these political currents typically approach the subject; the newsroom takes no position on which perspective is right.
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The core of the industrial dispute has been confirmed by Tagesschau and IG Metall. Details about the eventual effect on individual employment conditions have been presented as future negotiating points.
- confirmed Volkswagen gave notice on several collective agreements as of 31 December 2026. — This is stated in reporting by Tagesschau and Reuters-based reports. source
- confirmed IG Metall refers to ten collective agreements being affected. — Tagesschau attributes this figure to IG Metall. source
- confirmed The job security provision until the end of 2030 is, according to IG Metall, unaffected. — IG Metall states this explicitly in its initial response. source
- confirmed IG Metall has submitted a wage demand of 5 per cent. — The union states this demand on its page about the collective bargaining round. source
- confirmed Warning strikes could become possible after 1 January. — IG Metall describes the end of the peace obligation and the possibility of industrial action. source
Editor's note
The announced notices, the involvement of IG Metall and protection of the job security agreement until 2030 have been confirmed. The exact number of collective agreements and the eventual effects on allowances and training still depend on the negotiations.Sources
- Volkswagen kündigt zum Jahresende fast alle Tarifverträge — Tagesschau
- Volkswagen kündigt fast alle Tarifverträge — Tagesschau / NDR
- Volkswagen Vorstand will reihenweise Tarifverträge kündigen — IG Metall
- Tarifrunde Volkswagen 2026 — IG Metall
More on this in Dutch media
- NRC — „volkswagen cao”
- NOS — „volkswagen cao”
- Het Parool — „volkswagen cao”