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Tuesday, December 3, 2024

VW cancels labor deals amid escalating union dispute.

Volkswagen, Europe’s largest car manufacturer, announced that it would tighten austerity measures at the core VW brand, leading to the scrapping of six labor agreements in a standoff with unions and its works council. The company cited current economic challenges as the reason for ending its employment protection agreement and wage agreement for specialized positions. Volkswagen also announced the termination of agreements for temporary workers and apprentices who have completed their training. Despite job security being guaranteed until 2025, negotiations with worker representatives will begin soon. The VW Works Council head expressed strong opposition to the company’s plans, vowing to resist any layoffs. Trade union IG Metall also voiced objections to the end of the employment protection agreement, emphasizing the need for job security during challenging times. This decision comes as European car manufacturers face various challenges on the road to full electrification. Volkswagen recently warned of potential plant closures in Germany as part of efforts to enhance competitiveness.

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