Volkswagen has now formally terminated the employment security that has been in place since 1994. Europe’s largest car manufacturer announced that the corresponding letter of termination had been sent to the union. The contract will therefore expire at the end of the year. Terminations for operational reasons are possible six months later, i.e. from July 2025.
In addition to the employment security contract, which previously excluded such dismissals, several other agreements were also terminated, including the guarantee for trainees and the regulations for temporary work. According to company circles, the group’s board of directors had previously discussed and decided to terminate the contracts.
Collective bargaining round is brought forward
The company wants to quickly negotiate new regulations with the union and the works council, as Human Resources Director Gunnar Kilian announced. The aim is to agree on a follow-up arrangement by the time the job security expires in mid-2025. “This period now gives us the opportunity to work with employee representatives to find solutions on how we can make Volkswagen sustainable and competitive in the future,” said Kilian, according to the statement.
“The current phase is contributing to uncertainty. We can counteract this if we quickly create future-proof prospects for our company,” said Kilian. The collective negotiations on the VW wage tariff, which were actually only planned for October, are to be brought forward and extended to the contracts that have now been terminated. IG Metall had previously offered this.
Works council announces resistance
A good week ago, Volkswagen announced that it would be terminating the job guarantee that had been in effect for 30 years and would no longer rule out plant closures. So far, the company has not given a date for this. The works council and IG Metall have been campaigning against the plans ever since.
“Now the company has made true what we have been expecting for days,” said works council leader Daniela Cavallo. At the same time, she reiterated her opposition to the plans. “We will fiercely defend ourselves against this historic attack on our jobs. There will be no redundancies with us for operational reasons.”