EXPLAINED: Will there be job losses and plant closures at Volkswagen in Germany?

This deal, a decades-long collective bargaining agreement between Volkswagen and IG Metall, provided job security until 2029, now reverted to a less secure agreement.

Volkswagen now guarantees jobs only until June 2025, down from 2029, impacting approximately 120,000 staff at multiple plants as negotiations begin.

With the cancellation of this long-standing deal, Volkswagen has the opportunity to engage with employee representatives to ensure a sustainable competitive strategy.

If Volkswagen and IG Metall cannot reach a new agreement, pre-1994 terms will apply, potentially leading to significant cost implications for the company.

Read at www.thelocal.de