VW Faces Mass Labor Unrest as It Plans Wage Cuts and Plant Closures
Volkswagen (VW) is facing a storm of labor unrest as it plans to cut wages, close plants, and lay off tens of thousands of workers across Germany. Daniela Cavallo, head of the group works council, warns that no plant is safe from these plans. VW operates ten plants in Germany, with six in Lower Saxony, three in Saxony, and one in Hesse, employing around 120,000 people. Half of these workers are based in Wolfsburg. The company is now demanding a ten percent wage cut and zero wage increases over the next two years, according to the works council. Negotiations between VW and IG Metall on updating the VW works agreement have been tense. VW unilaterally canceled key parts of the core collective agreement in September 2024, breaking decades of job security guarantees. This move opens the door to potential mass layoffs from mid-2025, leading to intense labor conflicts. IG Metall has demanded job protection until at least 2030, but as of late 2025, no final updated agreement has been reached. The board wants to shut down at least three VW plants in Germany, with the plant in Osnabrück particularly at risk. All remaining plants are set to shrink, according to the works council. The works council also reports that VW is planning to close several plants and cut tens of thousands of jobs, with whole departments potentially being closed or moved abroad. VW had canceled the employment guarantee that had been in place for over 30 years in September, making dismissals possible from mid-2025. The proposed cuts and closures have put around 120,000 German VW workers on edge. The company's demands for wage cuts and the potential loss of jobs have sparked intense labor conflicts, with no final agreement reached as of late 2025. The future of VW's German operations hangs in the balance as negotiations continue.
