Overview
- A Monday report by Süddeutsche Zeitung, carried by AFP and other outlets, says internal Volkswagen papers propose suspending regular pay rises through 2030 as part of a board-approved 'Group Target Picture.'
- The leaked guidelines also reportedly call for cuts to variable pay, special payments and benefits, plus further job reductions tied to company-wide savings targets.
- Volkswagen declined to comment on the specific reports and described the coverage as speculation, leaving the measures unconfirmed and subject to negotiation.
- The plan follows a supervisory-board decision in early September to cut an additional 50,000 jobs on top of earlier reductions and flags four German plants as at risk between 2031 and 2034.
- Analysts and the report say a long pay freeze could mean roughly a 10 percent real income loss for affected workers in Germany and would reshape how collective bargaining is handled across the group.