3 sources·Business

Volkswagen and Union Reach Historic Wage Deal with Job Cuts and Capacity Reductions

Volkswagen and IG Metall have reached a significant wage agreement, securing jobs and allowing for necessary restructuring amid declining demand and competition.

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Updated: Dec 20th, 2024, 7:29 PM ET

Summary

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Volkswagen and the IG Metall union reached a deal affecting 120,000 workers in Germany, avoiding plant closures and layoffs through 2030. The agreement enables VW to cut over 35,000 jobs via early retirement and buyouts while aiming to save €15 billion. The company faces falling demand and rising competition, necessitating capacity reductions while securing existing wages, avoiding plant closures, and transitioning some production to Mexico. This historic agreement represents a critical step for VW's future amidst ongoing challenges in the automotive market.

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Volkswagen and Union Reach Historic Wage Deal with Job Cuts and Capacity Reductions - Pano News