According to media reports, Volkswagen and the German IG Metall union are set to begin a second round of negotiations on October 30 over the company's planned layoffs in its German operations. The union insists that Volkswagen must maintain normal operations at all of its German plants.
Volkswagen is currently under heavy public scrutiny as its plans to close a factory in Germany (the company's first-ever closure of a German plant) have severely strained its relationship with worker representatives. These representatives, who make up half of the company's supervisory board, have significant influence over strategic decisions.
Previously, Volkswagen canceled a decades-long agreement that guaranteed job security at six German plants until 2029. The company also stated that, in the face of declining demand, underutilized plant capacity, and fierce competition from emerging electric vehicle rivals, it must increase its cost-cutting efforts.
On October 15, IG Metall's chief negotiator Thorsten Groeger said in a statement: "From the initial talks until now, management has had enough time to do its homework. We expect the company to finally present a comprehensive plan for the next ten years that ensures job security and full capacity utilization."
During the first round of negotiations in late September, the union demanded that Volkswagen restore job security beyond 2030, fully utilize all German plants, and raise wages by 7% in line with IG Metall's industry-wide wage demands. Separate negotiations over the wage increase are still ongoing.
After Volkswagen rejected these demands, the first round of talks ended without an agreement. The union has threatened to call a strike if a resolution is not reached by December 1.
Volkswagen's chief negotiator Arne Meiswinkel stated after the first round of talks: "Only by achieving sustainable cost savings can we invest in new technologies and secure long-term employment."
