Expired collective bargaining agreements: IG Metall issues ultimatum to VW - and threatens labor dispute
There are no negotiations at Volkswagen yet. But after the termination of collective bargaining agreements, the conflict between the company and employees is becoming more intense. Is a long labor dispute threatening VW?
The IG Metall union has threatened Volkswagen with an industrial dispute, demanding that the company reverse the termination of a series of collective agreements by the end of October. IG Metall official Thorsten Gröger stated that once a termination has been communicated, it can be undone. The union has warned that it will "unleash a massive machinery" for an upcoming labor dispute at Volkswagen if the company fails to comply.
Ten collective agreements were terminated by Volkswagen in late September, effectively nullifying nearly all provisions of the house agreement, which covers issues such as working hours, holidays, and allowances. Volkswagen aims to adapt various regulations in response to current cost pressures, but has not yet presented specific demands.
Around 130,000 employees at Volkswagen AG in Germany are affected by the terminations, including brands such as Volkswagen Passenger Cars and Commercial Vehicles, the components division, and central group areas. Gröger viewed the step as a breach of trust. The negotiation period is set to start at the beginning of December, with Gröger suggesting November 24th as the first negotiation date.
The union will hold the negotiations at the threatened locations of Emden, Hannover, and Zwickau. IG Metall is demanding a 5% increase in wages, but the statement indicates that the situation may change due to the terminations. The union has specific ideas on how to alter or improve these collective agreements. Examples include extending the aging time regulations or the possibility of continuing employment security into the 2030s.
The union aims to present a comprehensive concept for the future of Volkswagen at a later time. A second meeting between representatives of VW, IG Metall, and the works council is scheduled for Friday in Hannover, where workers are seeking clarification on whether and how Volkswagen will adhere to the promises made in the 2024 future collective agreement.
With the tightened austerity plans in mind, the management intends to explain why the previously agreed cost-saving measures are no longer sufficient.
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