Volkswagen and Union Secure Jobs Until 2030

Volkswagen and the IG Metall union have reached an agreement securing the future of 10 production sites in Germany. The deal assures no layoffs until 2030, providing employment security for the company's 120,000 German employees.

This agreement revises the long-standing salary structure and prevents immediate factory closures. Volkswagen had previously considered reducing salaries by 10% and laying off thousands of employees to achieve savings of 10 billion euros.

However, the new arrangement avoids these drastic measures. The Golf production will move to Mexico, while Wolfsburg will continue with the ID.3 and Cupra Born models.

The plan includes a 35,000 job reduction by 2030, without closing plants. Additionally, a salary increase of 5% will be placed in a fund rather than distributed directly to employees, with a potential billion-euro payout if job guarantees are not extended past 2030. This agreement is seen as a socially responsible solution by leaders like Chancellor Olaf Scholz.