Volkswagen Reaches Labor Deal, Avoiding Germany Plant Closures

Published On Dec 20, 2024, 12:42 PM

Volkswagen has finalized a deal with the union IG Metall, ensuring that all 10 of its factories in Germany will remain operational and that no jobs will be lost until at least the end of 2030. This agreement comes after a lengthy negotiation process lasting over 70 hours, amidst significant pressures from union walkouts and a challenging market environment leading to a steep decline in Volkswagen's stock price. In exchange for job security, IG Metall has agreed to postpone wage increases until 2031, amidst fears of an industrial decline and competition from Chinese automakers.