In the event of a plant closure: What really happens to VW employees?
Article excerpt
When a car plant closes, many immediately think of mass layoffs. At Volkswagen, things are currently different. The group is cutting more than 35,000 jobs in Germany by 2030, with compulsory redundancies excluded. The cases of Dresden and Osnabrück show quite precisely how this works. The basis dates from December 2024. After more than 70 hours of negotiation, VW and IG Metall agreed on a restructuring package. It was the longest round of negotiations in the company's history. Previously, according to union figures, around 100,000 employees had participated in warning strikes twice. The result sounds contradictory but is logical. No site will be formally closed, yet almost a quarter of the 130,000 jobs in Germany will be eliminated. Production capacity will decrease by more than 700,000 vehicles per year. Job security applies until the end of 2030. "No site will be shut down, no one will be made redundant, and our company collective agreement will be secured long-term," said General Works Council Chairwoman Daniela Cavallo at the time, according to "Zeit Online". In return, employees forgo wage increases, and bonuses are cut. VW expects medium-term savings of more than 15 billion euros per year. Also interesting: ID. Cross: Why this VW is important for the German market. The reduction is almost entirely voluntary. Around 20,000 departures by 2030 are already contractually...
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Instead of a closure, an innovation campus is being created together with the Free State of Saxony and TU Dresden.
