Published by Uma Rajagopal
Posted on December 19, 2024
2 min readLast updated: January 28, 2026
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By Christina Amann
HANOVER, Germany (Reuters) -Talks between Volkswagen and labour unions over plant closures and pay cuts are expected to last well into Thursday as both sides have still not reached a deal, according to two people familiar with the matter.
Talks have been ongoing since Monday in hopes of reaching an agreement before Christmas to prevent massive strikes that the IG Metall union has warned could begin as early as next year.
Around 100,000 workers have already staged two separate strikes in the past month, the largest in the company’s history, protesting management’s plans to cut wages, reduce capacity, and potentially shut down German plants for the first time.
Talks could still fall apart, the sources said, requesting anonymity as the negotiations were private.
“There’s still much to do,” one of the sources said.
Volkswagen declined to comment and IG Metall was not immediately available for a comment.
Both sides remain far apart on key issues, including the potential for plant closures. Labour representatives have strongly opposed this, while the carmaker has maintained it cannot rule out the possibility.
Citing people familiar with the matter, Bloomberg reported earlier in the day that Volkswagen and labour unions were nearing an agreement to restructure the brand without closing factories in Germany.
The management is willing to keep plants running and restore job security agreements until 2030 in exchange for workers foregoing bonus payments, according to the report.
Volkswagen, Europe’s biggest automaker, is grappling with lean demand, rising costs and cheap competition from China.
(Reporting by Christina Amann; Writing by Maria Martinez; Editing by Christoph Steitz, Shri Navaratnam and Sherry Jacob-Phillips)
A plant closure refers to the permanent shutdown of a manufacturing facility, often resulting in job losses and reduced production capacity.
A pay cut is a reduction in an employee's salary or wages, often implemented by employers to reduce costs during financial difficulties.
A labor union is an organized group of workers that aims to protect and advance their rights and interests, often through collective bargaining.
Job security refers to the assurance that an employee will keep their job without the risk of becoming unemployed, often influenced by company stability.
Wage capacity refers to the ability of a company to pay its employees competitive wages, which can be affected by economic conditions and company performance.
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