Volkswagen is targeting the 35-hour working week to cut labour costs
The group, which is planning tens of thousands of redundancies and is threatening to close four plants in Germany, has terminated almost all its works agreements. The trade union is prepared for a confrontation. Mercedes also wants to extend the working week.
Key points
The dispute over labour costs at Volkswagen and in the German car industry has flared up again. Last week, the IG Metall trade union called for 5 per cent pay rises across the entire metalworking and electrical industry, as a starting point for the forthcoming collective agreement negotiations, which will affect 3.7 million workers.
The response from the Wolfsburg-based group, which has already planned tens of thousands of redundancies, is to terminate almost all its company agreements, including the one governing the working hours of its more than 100,000 employees in Germany. And the chief executive, Oliver Blume, is targeting the 35-hour week.
Head-to-head
Once again, the gulf between the two sides suggests a head-on clash is on the cards. IG Metall, which has just been forced to accept a drastic restructuring plan, is vowing to put up a fight.
The chief negotiator, Thorsten Gröger, described the company’s decision as a further ‘attempt to dip into workers’ pockets’. The chair of the works council, Daniela Cavallo, pointed out the concessions already accepted by staff in 2024 and warned that they would not go any further, even if it meant a confrontation.
According to the workers’ representatives, ten of the 13 existing agreements are set to be terminated, including provisions on supplementary pay and allowances under the collective agreement, training provisions and the framework agreement – the one that governs working hours and overtime. They will cease to have effect from the end of 2026.
