Volkswagen and IG Metall Reach Agreement to Prevent Plant Closures and Job Losses in Germany

Volkswagen (VW), Germany’s leading automotive manufacturer, has successfully negotiated a deal with the IG Metall trade union to stave off plant closures and immediate job redundancies in Germany. This agreement comes after intense discussions that began in September, during which VW had expressed concerns about the need to cut costs, prompting threats to shut down up to three factories.

The agreement ensures that no sites will be closed and that no employees will be laid off for operational reasons in the near term, securing existing company wage agreements for the long term. IG Metall’s works council chief Daniela Cavallo hailed the outcome as a significant achievement under challenging economic conditions.

Despite the immediate relief from plant closures, the agreement involves a substantial reduction of over 35,000 jobs by 2030, intended to save the company approximately €15 billion (£12.4 billion). The job reductions will be approached