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VW Moves to Cancel Multiple House Collective Agreements

The decision raises the chance of a sharp winter labour clash because unions have lodged a 5% pay demand and key tariff protections can be ended at year‑end.

Overview

  • Volkswagen told IG Metall and the works council it intends to cancel several elements of the VW house tariff, a disclosure worker representatives say was delivered in a meeting in Hannover and will be formalised with termination notices.
  • IG Metall has formally demanded a 5 percent wage increase for employees covered by the VW house tariff and said it will resist the planned cancellations, with union leaders calling the move an attack on staff pay.
  • The timing of the dispute is set by contract rules: the wage tariff can be terminated as of December 31 and the peace obligation ends on January 1, 2027, after which warning strikes are legally possible.
  • Unions point to Volkswagen’s recent shareholder payouts of about €2.6 billion, roughly €6 billion in Porsche‑related non‑cash impairments, and a falling personnel‑cost ratio to argue that wages are not the company’s main structural cost problem.
  • A verification meeting between VW, IG Metall and the works council is under way and formal tariff talks are due this winter, with works council leaders warning of a heavy confrontation that could affect pay, shift rules and site contracts even as 2024 employment guarantees remain in place.