Germany’s largest union, IG Metall, has signaled strong opposition to any attempt by Volkswagen to reverse a previously agreed restructuring plan, ahead of a key supervisory board meeting scheduled for this Friday. The warning comes amid ongoing tensions between the automaker’s management and labor representatives over what could become Volkswagen’s most extensive overhaul to date.
The proposed restructuring, which has been under discussion since July, involves potential plant closures, the separation of certain business units, and up to 50,000 job cuts. This would follow less than two years after the last major package was finalized, which itself followed prolonged negotiations and warning strikes. The company is aiming to address significant challenges including increased tariffs, competition from Asian manufacturers, and a declining market in China.
Thorsten Groeger, addressing workers at a staff meeting in Hanover—a location facing potential closure—emphasized the union’s readiness to resist any attempts to alter the existing agreement. “If the board tries to call this agreement into question again, then the factory floors will be up in arms at all our sites,” Groeger said. “We will oppose it with all our might.” While IG Metall has not explicitly threatened strikes at this stage, its message underscores the potential for intensified industrial action if negotiations deteriorate.
Volkswagen’s finance chief, Arno Antlitz, also addressed workers during the gathering, asserting the company’s commitment to preserving jobs where possible. Nonetheless, he highlighted the absence of a viable plan to maintain production at affected facilities in Hanover, Emden, Neckarsulm, and Zwickau. Antlitz warned that without reducing excess capacity, continuing current production levels would lead to a sustained cost disadvantage estimated at around €1.5 billion ($1.74 billion) annually.
Given Volkswagen’s significant role as one of Germany’s largest private employers, the dispute has drawn attention from regional political leaders worried about the economic and political repercussions. Michael Kretschmer, the minister-president of Saxony—home to the Zwickau plant—called for cooperation between workers, management, and political stakeholders to mitigate the impact of any job and capacity reductions. Kretschmer noted the political sensitivity of the issue, particularly amid rising support for the far-right Alternative for Germany (AfD) party in some regions.
As the supervisory board prepares to consider three competing restructuring proposals this week, the situation remains fluid. The potential for escalation includes the possibility of convening an extraordinary shareholder meeting, underscoring the high stakes of the ongoing dispute for both Volkswagen and the broader German industrial landscape.