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Wolfsburg. Volkswagen has now formally terminated the job security agreement that has been in place since 1994. The corresponding letter of termination has been delivered to the trade union, Europe's largest car manufacturer announced. The agreement will therefore expire at the end of the year. Six months later, compulsory redundancies will be possible, i.e. from July 2025.
In addition to the employment protection agreement, which previously excluded such dismissals, several other agreements were also terminated, including the guaranteed employment of trainees and the regulations for temporary work. According to company sources, the Group Management Board had previously discussed and decided to terminate the contracts.
Wage round brought forward
The Group intends to quickly negotiate a new arrangement with the trade union and works council, as Chief Human Resources Officer Gunnar Kilian announced. The aim is to agree a follow-up arrangement by the time the job security scheme expires in mid-2025. "This period now gives us the opportunity to find solutions together with the employee representatives on how we can make Volkswagen competitive and fit for the future in the long term," said Kilian according to the press release.
"The current phase is contributing to uncertainty. We can counteract this if we create future-proof prospects for our company in a timely manner," said Kilian. The collective bargaining negotiations on the VW pay scale, which were not actually scheduled to start until October, are to be brought forward and extended to include the contracts that have now been terminated. This was previously offered by IG Metall.
Saxony's Economics Minister Dulig (SPD) expressed his concern in a press release on Tuesday: "This is alarming, as the safety of the employees and the locations is at stake." He announced that the state government would "do everything possible" to secure the city locations in Zwickau-Mosel, Chemnitz and Dresden and avert compulsory redundancies.
The statement continues: "The employees are doing an excellent job, the products are competitive and good. VW's management mistakes cannot now be carried out on the backs of the employees." Dulig was confident that the ramp-up of e-cars would come with the approaching EU-wide ban on combustion engines in 2035.
Works council announces resistance
Just over a week ago, Volkswagen announced that it would be terminating the 30-year job guarantee and would no longer rule out plant closures. So far, however, the Group has not given a date for this. The Works Council and IG Metall have been up in arms against the plans ever since.
"So now the company has made what we have been assuming for days come true," said Works Council Chairwoman Daniela Cavallo. At the same time, she reiterated her opposition to the plans. "We will put up a fierce fight against this historic attack on our jobs. There will be no compulsory redundancies with us." (dpa)
