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[BUSINESS] · Germany, Mexico, Czechia · 72 sources

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Volkswagen plans global wage freeze until 2030 amid restructuring

Volkswagen is facing intense labor disputes following reports that the company plans to freeze wages for approximately 660,000 employees globally until 2030. According to internal documents cited by Süddeutsche Zeitung, this measure is part of a board-approved strategy known as ‘Group Target Picture’.

The German union IG Metall has strongly criticized the plan, calling it ‘unrealistic’ and warning that a lack of wage increases amid inflation could result in a real income loss of roughly ten percent for workers. The union is demanding a five percent wage increase as new collective bargaining negotiations are set to begin in late November.

In addition to the wage freeze, Volkswagen is undergoing a major restructuring process that includes plans to cut approximately 100,000 jobs globally—about 15 percent of its workforce. The company is also facing pressure to reduce costs due to increased competition in China and shifting market dynamics in Europe. While Volkswagen has declined to comment on specific reports, characterizing them as speculation, the company has confirmed that upcoming negotiations will serve as the forum for discussing labor costs.

Entities

Audi · European and Global Works Council · IG Metall · Oliver Blume · Porsche · SITIAVW · Süddeutsche Zeitung · Thomas Schäfer · Volkswagen · Wolfsburg · Škoda Auto

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