Since 1994 the job security clause in the labor agreement between Volkswagen and the union IG Metall has safeguarded workers in automotive and heavy industries from layoffs until 2029.Volkswagen announced that the labor agreement would stay in place until the end of the year with the possibility of layoffs as early as June 2025.Daniela Cavallo leader of the works council and a member of IG Metall promised that the union would fiercely protect the agreement.

Cavallo stated in a press release that we will strongly oppose this significant threat to our jobs. Volkswagen announced that there will be no job cuts and they are also terminating other labor agreements such as the one requiring them to give permanent jobs to trainees and apprentices and another agreement providing higher wages to temporary workers.

Almost half of Volkswagen s workforce worldwide is located in Germany. The company and the union are anticipated to start discussions on a fresh salary agreement this autumn.

The union is requesting a 7 percent salary boost as well as other requests such as preventing factory shutdowns.

The Volkswagen Group controls 10 brands which include Porsche and Audi. The company notified union leaders at a Brussels plant last week that they do not intend to continue production of the Q8 model there after 2025.If additional models cannot be located the factory will shut down resulting in the loss of 3 000 jobs.

Volkswagen informed union leaders that they were terminating a labor agreement that shielded workers from layoffs following a statement made the previous week about the potential closure of factories in Germany due to declining sales and increasing expenses.