Volkswagen intends to freeze salaries for its 660,000 employees worldwide until 2030, according to the group’s Global Works Council, which confirmed an earlier report by Sueddeutsche Zeitung on Monday. The council said it had received internal information regarding the executive board’s plans.
Volkswagen declined to comment on what it described as "speculation." A company spokesperson added that a new round of talks scheduled for later this week would serve as the appropriate forum for any proposals related to labour costs.
The works council criticised management’s approach as "absurd" and anticipated strong resistance to what it characterised as the plan’s "rather unrealistic" implementation. A spokesperson for Germany’s trade union IG Metall emphasised that "at Volkswagen, pay development is decided at the negotiating table, not by decree from the executive boardroom."
Relations between Volkswagen and its labour representatives have deteriorated in recent months, as CEO Oliver Blume advances the most radical restructuring in the German automaker’s history.
The Sueddeutsche Zeitung had earlier reported the news on Monday, citing internal documents. The absence of pay rises could result in an effective income loss of around 10% for affected employees due to inflation, the paper noted.
The report also stated that new global management guidelines, effective from the fourth quarter, include cuts to variable pay, special payments, benefits, and jobs.
