Automotive industry: Agreement at IAV: Job cuts and site security

The future of the automotive supplier IAV's Berlin-Charlottenburg location appears secure after an agreement was reached between the company and workers. The deal, announced by IG Metall, prevents any business-related dismissals until the end of 2028 and guarantees the maintenance of all locations, according to the union. IAV stated that the sites should receive a binding agreement on utilization and direction by the end of March 2027.

Consequently, Berlin will become a "hub for core competencies with an IT focus." Meanwhile, the plant in Gifhorn, Lower Saxony, is set to be strengthened as an "expansion center," while the site in Stollberg, Saxony, will remain a "permanent part of the location network." Roughly 2,000 positions are expected to disappear, however, the IG Metall was unable to prevent the planned reduction of more than 2,000 jobs across Germany.

By the end of 2027, employment at all German sites is set to decrease from the current 5,000 to 2,970 employees, IAV reported. The job cuts will primarily be made through early retirement and voluntary programs, both parties emphasized. IG Metall reported that around 1,250 workers are currently employed at the Berlin site and 800 at the Stollberg location near Chemnitz.

The agreement came after extensive protests from hundreds of employees in Berlin as well as in Gifhorn. IAV CEO Jörg Astalosch acknowledged that "this solution was not given to anyone, it has demanded a lot from all parties." He added, "The workforce at IAV has demonstrated what can be achieved when employees unite and fight for their interests."

Jan Otto, the regional leader of IG Metall in Berlin-Brandenburg-Sachsen, shared his perspective, stating that "unfortunately, management never seriously considered the workers' proposals for new business areas."