Volkswagen Ends Several In-House Collective Agreements, Opening New Round of Talks with IG Metall

Volkswagen has moved to cancel a set of company-level collective agreements, invoking the revision clause built into its future collective agreement. The terminations take effect on 31 December 2026. Union sources say roughly ten agreements are hit, among them the framework collective agreement that governs core working conditions such as hours and overtime, plus deals on supplementary pay, allowances, the ‘Tarif Plus’ scheme and training.

The trigger, according to the company, is a sharply tougher business climate: a demanding market, geopolitical friction, trade barriers and mounting competition, especially from China. HR board member Arne Meiswinkel framed the step as a way to keep previously agreed cost-cutting on track. Under German law the cancelled agreements continue to apply for now, so nothing changes for the workforce straight away, and a hiring freeze on mandatory redundancies stays in force through the end of 2030.

IG Metall, which finished its own part of the process first, argues that employees have already absorbed deep concessions. The union is pushing for a five per cent pay rise, which Volkswagen rejects on economic grounds; the peace obligation lapses on 1 January. Whether longer standard weekly hours — talk in the group has touched on 38 or 40 hours versus the current 35 — will enter the talks remains open, as no formal demand has been tabled.

Meanwhile, forward allocation for several German sites, including Emden, Zwickau, Hannover and Audi’s Neckarsulm plant, is said to be undecided, with Zwickau and Emden central to the group’s EV output. Volkswagen is not pulling back on future spending but is leaning more on partnerships — its expanded battery collaboration with Gotion in Spain, Slovakia and Morocco totals around €3.22 billion across several joint ventures. Negotiations resume in the second half of October.