Volkswagen is ready to crack down on labor costs. The German auto group wants to freeze salaries until 2030 for most of its approximately 600 thousand employees worldwide, as part of the savings plan with which it is trying to recover competitiveness and profitability against its Chinese competitors. He brings it back Suddeutsche Zeitungwho had access to some internal documents of the Wolfsburg house.
Reduction of 100 thousand workers
According to the German newspaper, the freeze on wage increases could result in a loss of purchasing power of around 10% for the workers involved, due to the inflation accumulated in the coming years. The measure would be added to the job cuts already announced by the group, which in September doubled its headcount reduction target to 100,000 jobs (15% of the global workforce).
Stop benefits and overtime
The salary freeze is contained in the internal document called “Group Target Picture”, a plan for the future of the group already approved by the board of directors and intended for international management. The new guidelines, which will come into force in the fourth quarter of 2026, provide for a review of the collective bargaining methods in the various countries in which the group led by Oliver Blume operates. The goal is to obtain a freeze on salary increases until 2030, together with a reduction in variable components of pay, extraordinary payments and company benefits.
Further job cuts are also indicated in the documents. Second Suddeutsche Zeitungall the brands, regions and factories of the group will be called upon to make an “adequate” contribution to achieving the savings objectives. The tightening would therefore concern the entire international organization of Volkswagen, although the concrete modalities will have to be defined through negotiations with the unions.
The negotiations and the dark period
The German manufacturer is grappling with the need to reduce industrial costs and face growing competition from Chinese manufacturers, especially in the electric car market. In September Volkswagen had already cut its financial forecasts and expanded the number of workers to be furloughed. The possible freeze on wages until 2030 demonstrates that management also needs to intervene on the salary costs of employees who will remain in the group.
The game then shifts again to the confrontation with the unions, already involved in negotiations on the restructuring of the German factories. Interviewed by Suddeutsche ZeitungVolkswagen did not confirm the measures reported by the newspaper in detail, limiting itself to explaining that the next round of negotiations will be the place to first discuss the internal operating agreements.