Volkswagen proposes wage freeze for Škoda Auto employees until 2030

Volkswagen is requesting a freeze on wages, bonuses, and premiums for Škoda Auto employees through 2030, according to the KOVO union. The automotive giant is facing significant challenges, including high costs, excess capacity, increasing competition from China, and American tariffs, leading to a planned global restructuring that could eliminate up to 100,000 jobs.

Union representatives have rejected the proposal, describing it as an attack on hardworking employees rather than an act of solidarity. Jaroslav Povšík, chairman of the company council, warned that any layoffs could lead to production stoppages across all three Czech plants.

While the parent company struggles with a 5.4 percent decline in electric vehicle sales, Škoda Auto has reported a 41.3 percent year-on-year increase in electric vehicle deliveries. The current wage agreement at Škoda Auto remains in effect until March 31, 2027, with new negotiations expected to be exceptionally difficult.