FRANKFURT, Germany (Reuters) – Volkswagen told IG Metall, one of Germany’s leading trade unions, on Tuesday it was scrapping a series of collective agreements that included a job guarantee until 2029 at six German plants, the union said.
Europe’s top carmaker is cancelling decades-old job guarantees as part of a cost-cutting drive that has led to a standoff with workers as Volkswagen struggles to compete with cheaper Asian rivals.
“These cancellations reached us a few seconds ago,” IG Metall said in an emailed statement.
The announcement comes after Volkswagen said it was considering closing factories in Germany for the first time in its 87-year history, sending shockwaves through the global auto industry and raising concerns from the German government.
The chairwoman of the group’s works council, the body representing employees, has promised fierce resistance against layoffs and plant closures and has accused management of being responsible for Volkswagen’s ills through its management choices.
IG Metall had previously said it might consider switching to a four-day week to avoid closures.
Negotiations are due to begin in mid- to late October, with strikes possible from late November.
Volkswagen’s troubles come amid economic uncertainty, with weak growth, higher energy prices and doubts about its lucrative Chinese business ties testing Germany’s model of consensual industrial relations.
(Reporting by Victoria Waldersee, written by Matthias Williams; by Florence Loève, edited by Kate Entringer)
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