Nothing stands in the way of Volkswagen carrying out a reorganization, with employees fearing for their jobs.
It should be clear by now. Things aren’t going so well at Volkswagen. A reorganization at the German car company seems a logical step in the search for financial health.
30 year old agreement terminated
The step that employees will have to fear for their jobs at Volkswagen is getting closer. Yesterday, the company terminated a 30-year-old job security agreement with the union. This year, the employees have nothing to fear. However, Volkswagen has free rein to lay off people from July 2025 to implement cost savings.
The agreement with the union gave employees something to hold onto if everything went to shit. That stick is gone now. In addition to terminating the agreement, Volkswagen has also stopped offering a job guarantee for trainees who come to work for the company. Automatically qualifying for a job after a traineeship is therefore no longer an option.
These are all the first signs that big things are going to change within Volkswagen. The group is now preparing for a reorganization, all developments point to that. How big or how small the reorganization will be is not clear. It will be noticeable for the German economy in any case, Volkswagen is the largest employer in Germany.
Last week, Volkswagen announced that it was considering closing a factory for the first time in the history of the company. The reason is the disappointing demand for electric cars, which VAG has been focusing on so much in recent years.
It is not the case that all agreements will be thrown in the trash. Volkswagen hopes to be able to reach new agreements and agreements with unions. For example, realistic agreements on salaries. If Volkswagen does indeed start laying off employees in a round of layoffs, the company can still expect resistance from the unions.
