Volkswagen demands wage cuts for workforce in collective bargaining round

Background of the collective bargaining round

The German car manufacturer Volkswagen is currently negotiating a new collective bargaining agreement with the IG Metall trade union. The current agreement expires on 28th February 2023. In the run-up to the negotiations, Volkswagen announced that it would demand wage cuts for its workforce.

Volkswagen's demands

According to media reports, Volkswagen is demanding a wage freeze for the next two years. In addition, the company wants to cut annual bonuses by 10% and reduce the number of paid vacation days by one.

IG Metall's response

The IG Metall trade union has rejected Volkswagen's demands. The union is calling for a 8% wage increase over a period of 12 months. In addition, IG Metall wants to maintain the current level of bonuses and vacation days.

Consequences of a failed collective bargaining round

If Volkswagen and IG Metall fail to reach an agreement, a strike is possible. A strike would have a significant impact on Volkswagen's production and could cost the company millions of euros in lost revenue.

Assessment of the situation

The collective bargaining round between Volkswagen and IG Metall is a complex and difficult process. Both sides have very different interests and it is unclear whether a compromise can be reached. If a strike is called, it would be a major setback for Volkswagen and the German economy as a whole.

Outlook

The collective bargaining negotiations are expected to continue for several weeks. It is possible that a compromise will be reached at the last minute. However, it is also possible that a strike will occur. The outcome of the negotiations will have a significant impact on the future of Volkswagen and the German automotive industry.