Volkswagen wants to freeze employee salaries until 2030
The German automotive concern Volkswagen plans to freeze salary increases for employees worldwide until 2030. The company's management has already given corresponding instructions to human resources departments, but their implementation will depend on negotiations with employee representatives.
Der Standard reported this on October 19, citing Süddeutsche Zeitung. The information about the concern's plans was also confirmed by the German trade union IG Metall.
The proposal affects approximately 660,000 Volkswagen employees in various countries. According to the company's internal documents, the concern wants to forego regular salary increases over the next four years.
New personnel cost planning rules began to be applied at the management level from the beginning of October. They provide for maintaining the current level of wages and not setting aside funds for future increases.
In addition, Volkswagen is considering cutting bonuses, additional payments and other employee benefits.
Previously, when forming personnel budgets, the concern took into account expected inflation and provided funds for salary increases based on the results of local collective bargaining. Now the company wants to change this approach.
Trade unions warn of loss of purchasing power
IG Metall has calculated that if the plan is implemented, employees could lose at least 10% of the real purchasing power of their salaries by 2030. This estimate is based on the assumption that consumer prices will continue to rise.
The European and global works councils of Volkswagen have opposed the initiative. Employee representatives emphasize that wage conditions are determined through collective bargaining in individual countries, so the concern's management cannot unilaterally impose a general ban on salary increases.
Instead, IG Metall is demanding a 5% wage increase over 12 months.
Negotiations on new tariff conditions are set to begin at the end of November. If no compromise is reached, Volkswagen employees in Germany could organize strikes from the beginning of January 2027.
Volkswagen has not yet confirmed the intention to introduce the salary freeze in the proposed form. A company representative told German media that the concern does not comment on speculation about future tariff agreements.
Volkswagen continues large-scale cost reduction
The new plans emerged after the company terminated ten of the thirteen main tariff agreements with employees in Germany at the end of September.
As previously reported by Kurs.com.ua, the changes could affect allowances, additional payments, working hours and other working conditions. At the same time, the agreement that protects employees from dismissals for operational reasons until the end of 2030 remains in force.
The concern is also carrying out large-scale restructuring. In September, Volkswagen's supervisory board approved a program to cut about 50,000 more jobs worldwide in addition to previously planned cuts.
The company attributes the need for savings to increased competition in the automotive market, high production costs and deteriorating financial results.
Thus, salary freezes have become another possible element of Volkswagen's cost reduction program. However, the final wage conditions will be determined during negotiations with trade unions.
Based on materials from: Der Standard, 19.10.2026, IG Metall
