ZF Friedrichshafen reaches compensation and site security agreements

Automotive supplier ZF Friedrichshafen has reached significant agreements regarding compensation structures and site security following months of negotiations between management, the works council, and the IG Metall union.

In Friedrichshafen, a compromise has been proposed to restructure compensation for approximately 8,000 employees. The agreement involves phasing out the ‘Zeppelin-Zulage’—an above-tariff supplement introduced in 2007 that accounted for 7 to 13 percent of monthly income—by July 1, 2027. It will be replaced by a ‘Leistung-Plus’ model, which links extra payments to both individual performance and the company’s economic success.

Additionally, a separate agreement has secured the future of ZF locations in Hannover, Langenhagen, Jeversen, and Gronau until at least December 31, 2030. This deal includes commitments to specific products and investments, ensuring Hannover remains a lead factory for brake and vehicle control systems. The agreement also stipulates that operational redundancies are excluded until the end of 2028, with a potential extension to 2030, and provides paths to permanent employment for temporary workers and apprentices.