Volkswagen and IG Metall Union Reach a Landmark Deal

In a significant development for the automotive industry, IG Metall union declared on Friday that Volkswagen has committed to avoiding job losses and factory shutdowns. This decision comes after intense negotiations between the carmaker and labor representatives focused on cost-cutting strategies.

The union emphasized their three main objectives during the negotiations: reducing excess capacity at German sites, lowering labor costs, and decreasing development costs to a competitive level. They proudly announced that viable solutions have been achieved for all three issues.

This breakthrough follows marathon negotiations spurred by two nationwide strikes at Volkswagen factories. These strikes were part of a broader push for better conditions amidst ongoing wage talks. The situation intensified with Volkswagen's initial proposal to shut down three plants and implement a 10% pay cut.