Volkswagen and IG Metall Struggle to Resolve Labor Dispute

Prolonged negotiations over wage cuts, job security, and factory closures continue with no resolution in sight after 36 hours of talks.

Volkswagen and IG Metall have entered the third day of intensive negotiations aimed at resolving a contentious labor dispute before Christmas.
Key sticking points include Volkswagen's demands for a 10% wage reduction, potential factory closures, and layoffs, which the union has firmly rejected.
The IG Metall union insists on preserving all ten German locations, maintaining a 130,000-worker employment guarantee, and avoiding permanent wage cuts.
Volkswagen cites high operational costs and low factory utilization as reasons for its proposed measures, which the union has labeled as 'red lines.'
With no agreement yet, IG Metall has warned of escalating strikes in 2025, following two prior walkouts involving 100,000 workers across nine sites.