Volkswagen Proposes Increased Working Hours, Cancels Labor Agreements

Volkswagen is seeking to increase working hours for approximately 130,000 German employees, according to an announcement on October 1st. CEO Oliver Blume stated German labor costs are roughly double those of other European countries where Volkswagen operates. The company is considering options including reducing vacation days or increasing the weekly work hours without additional pay.

To facilitate negotiations, Volkswagen cancelled ten collective bargaining agreements, including the key Manteltarifvertrag governing working time and vacation. This action immediately drew criticism from IG Metall, which pledged resistance. The move follows a recent supervisory board approval of a broader plan involving substantial cost savings, including potential cuts of tens of thousands of jobs.

The company indicated increased working hours could help alleviate overtime and reduce costs where additional hiring is currently needed. A concrete proposal for increased weekly hours has not yet been issued. The announcement follows similar discussions at Mercedes-Benz and BMW regarding the standard 35-hour work week, prompting union opposition.

Volkswagen’s action underscores a broader effort to reduce costs amid competitive pressures. The outcome of negotiations will determine the extent of changes to working conditions and their impact on the company’s financial performance.