VW Secures Saxony Restructuring Plan: 35,000 Jobs Cut, Production Shifted
Volkswagen (VW) has concluded negotiations with the works council and IG Metall union, securing a comprehensive savings and restructuring plan for its Saxony operations. The agreement, reached on December 20, 2024, includes job reductions, employment guarantees, and production shifts. Meanwhile, VW has rejected Saxony's demands for additional research funds and job guarantees, stating that negotiations are complete and no renegotiations are needed.
The agreement between VW and the works council involves reducing over 35,000 jobs by 2030, introducing a new employment guarantee until 2030, and relocating production of combustion engine models from Wolfsburg to Puebla, Mexico. Despite these reductions, full factory closures have been avoided, and VW has committed to potentially paying one billion euros to employees if no new agreement follows the current guarantee. The future of the Transparent Factory in Dresden remains contentious, with only 135 of 280 employees having a perspective. VW will halt production in Zwickau and Dresden from October 6 due to weak demand for electric cars. Saxony's Minister President Michael Kretschmer has demanded 100 million euros in research funds and job guarantees for 2,000 employees from VW, but VW has responded coolly to these demands.
VW's negotiations with the works council and IG Metall union have resulted in a comprehensive plan for Saxony's operations, including job cuts and production shifts. Despite Saxony's demands for additional funds and guarantees, VW maintains that negotiations are complete and no renegotiations are needed. The future of the Transparent Factory in Dresden and the impact of production halts on employees remain uncertain. International experts will visit the Transparent Factory in mid-November to audit its excellence status.
