Volkswagen cancels major labour pacts as cuts deepen

Volkswagen has cancelled a large part of its collective bargaining agreements in Germany. The move includes the central Manteltarifvertrag, which set rules on pay and working conditions.
The company has set a planning target of about 50,000 job cuts. Around half of the cuts could hit German sites, according to reports.
IG Metall district leader Thorsten Groeger called the move disrespectful and irresponsible. He said the union learned of the plans later than the public.
The future of major German plants remains open. The sites include Emden, Hanover, Zwickau, and Audi’s Neckarsulm. Their fate beyond 2031-2034 is unclear.
The decision follows a board-approved restructuring in September. Workers at Volkswagen, BMW, and Bosch staged protests across Germany last month.
The carmaker is under pressure from weak demand in China, high costs, and Asian rivals. In 2024, it had agreed to cut 50,000 jobs by 2030. The new plan goes further. Total cuts worldwide could reach 100,000.
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