Volkswagen: job security until 2025 despite cuts

25.11.2016

After negotiations between Volkswagen (VW) management and the VW Works Council, the world's biggest car manufacturer has announced it will cut 30,000 jobs by 2025, but without any dismissals.

Months of discussions between German IndustriALL affiliate IG Metall, the VW Works Council and company management on the future of VW, new technology and an efficient production system, have resulted in what the parties call a "pact for the future".

The accord includes agreements about early retirement and the promise to exclude dismissals until 2025. Although a high number of job losses, 23,000 of which will affect German operations, the auto giant hopes to create 9,000 new jobs in growth areas like digitalization and electric cars.

Helmut Lense, IndustriALL auto director says:

Cutting 30,000 jobs is a lot. But between now and 2025, workers will not be affected by dismissals. The result of the negotiations show what unions and work councils can achieve with high union density and well-functioning social dialogue.