IG Metall Seeks Volkswagen Pledge on 2024 Wage Deal

IG Metall is pressing Volkswagen to state clearly whether it will uphold the landmark wage agreement reached in December 2024, a senior union representative said, amid concerns that a recent turnaround plan could erode the deal.

Thorsten Groeger told reporters in Hanover that union members decided on Friday to invoke a legal clause contained in the 2024 agreement to force the issue. The step intensifies a dispute over the carmaker's future, setting management against labour representatives and state government stakeholders.

The December 2024 deal, struck after mass walkouts, averted immediate plant closures and secured certain job and production guarantees, while still resulting in 35,000 layoffs. It also includes a strike truce running until December 31, 2026.

At the centre of the renewed friction are CEO Oliver Blume's overhaul plans, which include the threat of four plant closures early next decade. The company is grappling with Chinese competition, rising tariff payments and high manufacturing costs.

"This uncertainty cannot continue for the workforce at our locations," said Daniela Cavallo, Volkswagen's works council chief.

The union's move signals a further escalation in the struggle over Volkswagen's restructuring path, with roughly 100,000 layoffs and drastic production cuts under discussion.