Germany - Volkswagen agrees deal - December 31, 2024

Car producer Volkswagen has reached a deal with the trade union IG Metall which will avert plant closures in Germany and avoid immediate compulsory redundancies. The two sides have, however, agreed to cut more than 35,000 jobs across the country in a "socially responsible manner" by 2030, in order to save some € 15 billion. Volkswagen had previously warned it might have to close plants in the country for the first time in a bid to cut costs. After drawn-out negotiations which began in September, the union said that the two had "succeeded in finding a solution" that secures jobs and enables future investment. According to the head of the works council, “no site will be closed, no-one will be laid off for operational reasons and our company wage agreement will be secured for the long term".

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