Volkswagen workers threaten strikes over cancelled wage agreements

Volkswagen workers threaten strikes over cancelled wage agreements

Volkswagen workers and the IG Metall union have warned of possible strikes from January 2027 unless the carmaker withdraws its decision to terminate almost all wage agreements covering its German workforce by the end of October.

The agreements cover protections such as working hours, holiday pay and other employment conditions. Union representatives say the move breaks with commitments reached in a 2024 agreement, while Volkswagen argues that Chinese competition, tariff costs and the expensive transition to electric vehicles have intensified pressure to reduce costs.

The dispute comes as the company pursues a broader restructuring and cost-saving programme through 2030. Workers’ representatives have also raised concerns about proposed pay restraint, while management says the company must become more competitive.

Further formal negotiations are scheduled for November 24 in Emden and December 15 in Zwickau. If the dispute remains unresolved after the current industrial peace period ends, warning strikes or broader industrial action could follow in the new year.