In the culmination of Volkswagen’s longest-ever union negotiations, the German automaker reached a critical agreement to delay plant closures and sweeping layoffs, while workers stepped back from further strikes. The resolution, finalized after a gruelling 70 hours of discussions, ensures all 10 of Volkswagen’s German plants will remain operational, with involuntary layoffs postponed until 2030.
The agreement marks a temporary win for the automaker’s 120,000 German workers. However, it does not fully resolve Volkswagen’s broader struggles in the European market. The company has committed to a restructuring plan that includes shedding over 35,000 positions, primarily through early retirement packages and buyouts, as production scales down by approximately 734,000 vehicles.
Key Concessions on Both Sides
Volkswagen withdrew its initial proposal of a 10% wage cut, while the union compromised on its demand for a 7% pay increase. These negotiations followed months of unrest, including a major strike earlier this month involving 100,000 metalworkers, with another strike planned for January.
