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The automaker agreed to keep its ten factories open in Germany and guarantee the employment of workers until the end of 2030.
By Melissa Eddy
Report from Berlin
Volkswagen, Germany’s largest car maker, reached an agreement with its union on Friday, ending three months of clashes that shook the country and highlighted the extent of Germany’s trade decline.
Under the terms of the agreement, reached after more than 70 hours of negotiations in a hotel in the western city of Hanover, the company committed to keeping its ten factories in Germany open and guaranteeing the employment of its staff until the end of 2030. At that time, the company will present a restructuring plan that will include the elimination of more than 35,000 jobs through retirements and retirements.
In return, the IG Metall union, which represents the majority of Volkssalaryn workers, withdrew its demand for a wage increase until 2031 and agreed to bonus cuts and production cuts for shipments of thousands of cars at several plants.
“No plant will be closed, no one will be laid off and our corporate wage agreement will be guaranteed in the long term,” said Daniela Cavallo, president of the Volkssalaryn works council, when commenting on the agreement.
At stake were not only salaries, but also Volkswagen’s plans to solve the problem of overstaffing and lack of orders, amid falling demand in Europe and the growing festival of Chinese carmakers.
Volkswagen’s woes have mirrored Germany’s economic malaise. Officials in the country have forecast that the economy will contract in 2024, for the second consecutive year. Economists do not expect to see a significant return to growth in 2025.
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