IG Metall and Works Council force Volkswagen board into review talks over 100,000 job cuts

Union demands formal review talks

The tariff commission of IG Metall voted unanimously on 11 September 2026 to activate a formal review clause from its December 2024 collective agreement with Volkswagen. Union district manager Thorsten Gröger and General Works Council chairwoman Daniela Cavallo announced the move during a press conference in Laatzen, near Hanover. The employee representatives demand formal talks before the end of the third quarter in September 2026 to review corporate adherence to earlier commitments on investments, future models, and production processes. Invoking the clause does not cancel or terminate the collective bargaining contract, which includes job security provisions through the end of 2030. If both sides fail to reach an understanding during the upcoming sessions, union representatives noted that the dispute can be referred to an official conciliation board.

Thorsten Gröger stated the purpose of the formal initiative during the briefing in Lower Saxony.

We call on the company to come to the table and explain to us how the collective agreement will be upheld.

Deeper cuts trigger employee alarm

Labor tensions escalated after the Volkswagen supervisory board approved a new restructuring plan that foresees shedding up to 100,000 jobs worldwide. The new decision adds 50,000 global positions to the 50,000 workforce reductions already agreed since 2024 across Volkswagen, Audi, Porsche, and software unit Cariad. In Germany, total planned job cuts will increase to at least 75,000 positions, alongside a 25% reduction in management posts. Works council representatives reported that statements made by board members during recent staff meetings created deep unease across manufacturing plants. Daniela Cavallo pointed out that workers in Emden and Zwickau had met all agreed conditions for vehicle allocations, yet management evaded clear answers regarding future production plans.

Daniela Cavallo addressed the anxiety spreading across the assembly lines.

This uncertainty cannot continue for our workforce at the locations.

Restructuring targets and plant uncertainty

The automaker aims to achieve a 9% operating return on sales by 2030 based on global deliveries of roughly nine million vehicles, a program requiring €31 billion in earnings improvements. Operating margin stood at 3.8% during the first six months of 2026. Under the approved restructuring blueprint, the group investment budget drops to €135 billion, while European production capacity will be reduced by more than 500,000 vehicles. Four German assembly sites (Emden, Zwickau, Hanover, and Neckarsulm) face uncertain futures and have received a probation period until late June 2027 to meet specific cost benchmarks. Meanwhile, the Osnabrück plant is slated for sale to an investor and the state of Lower Saxony for conversion into a defense manufacturing facility.

Volkswagen also plans to eliminate half of its vehicle portfolio, including phasing out the ID.5 and reducing equipment variants by up to 75%.

Management response and market pressures

Volkswagen management responded in writing by welcoming the union request for talks and confirming its readiness to meet before the end of September 2026. The company stated that direct discussions are necessary to implement the 2024 agreements while addressing structural challenges across the European automotive sector. In its statement, the automaker cited rising geopolitical tensions, trade barriers, and competition from more than 100 new vehicle brands emerging from China that are expanding into Europe. Works council leadership similarly called on European policymakers to establish fair competitive conditions against subsidized foreign manufacturers rather than leaving structural industrial burdens entirely to labor negotiations.