IG Metall Urges Volkswagen to Confirm Commitment to Landmark 2024 Wage Pact
Union Demands and Ongoing Tensions at Volkswagen
IG Metall Seeks Clarity on Wage Agreement
HANOVER, Germany, Sept 11 (Reuters) - Germany's IG Metall is demanding a clear commitment from Volkswagen on whether it will honour a landmark wage deal struck in 2024, a leading union representative said, citing fears that a recent turnaround agreement could undermine it.
Legal Clause Invoked by Union Members
IG Metall members on Friday decided to invoke a legal clause, which was part of the agreement reached in December 2024, to that effect, Thorsten Groeger told reporters in Hanover.
Escalation in Labour Dispute
The move marks an escalation in the fight for Volkswagen's future, which has pitted management against the group's labour and state government stakeholders over a plan to roughly double layoffs to some 100,000 and drastically cut production.
Workforce Concerns Amid Uncertainty
"This uncertainty cannot continue for the workforce at our locations," said Daniela Cavallo, Volkswagen works council chief.
Details of the 2024 Wage Deal
Layoffs and Job Guarantees
The 2024 deal, which was agreed after mass walkouts, resulted in 35,000 layoffs but fended off immediate plant closures while securing certain job and production guarantees from management.
Strike Truce Provision
The agreement also includes a strike truce until December 31, 2026.
Renewed Tensions Over Restructuring Plans
CEO Oliver Blume's Overhaul and External Pressures
Tensions between the two sides have flared again in recent months over CEO Oliver Blume's overhaul plans, including four threatened plant closures early next decade, as Europe's top carmaker battles Chinese competition, mounting tariff payments and high manufacturing costs.
Reporting and Editorial Credits
(Reporting by Christina Amann; Writing by Rachel More; Editing by Christoph Steitz and Miranda Murray)
