Volkswagen (VW) is considering a wage freeze for many of its global personnel lasting until 2030 as part of a wider cost-reduction programme, German daily Süddeutsche Zeitung reported, citing internal company papers.
Around 600,000 people work for the group worldwide, and the proposed step could reach a large share of them.
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The cited records designate a “Pay freeze until 2030” under VW’s internal “Group Target Picture” restructuring plan.
VW declined to comment on the report to the publication, stating that it does not comment on “such speculation”.
A company spokesman added that the upcoming negotiation round was “the place to first discuss internal company agreements of all kinds”.
Just Auto has also contacted VW for comment.
The internal documents, cited in the report, note that due to the “critical situation of the VW Group”, new collective bargaining guidelines would take effect globally from the fourth quarter of 2026.
The proposed measures also encompass reductions in variable remuneration, benefits, and special payments, alongside enhanced productivity, greater working-time flexibility, decreased overtime, and headcount reductions in non-production areas.
However, the files allow for regional conditions to be evaluated, meaning an identical wage halt might not be implemented across every brand, business unit, and market.
In Germany, 130,000 employees covered by the company collective agreement had already postponed an agreed 5.5% pay increase under the 2024 austerity package.
Multi-year wage stagnation could diminish real incomes amid continuing inflation, with economic researchers anticipating price increases of around 3% this year and next.
“It should be clear to everyone in the salary class of the group board of management: Such wishful thinking on the part of the Wolfsburg employers’ side cannot become a reality”, a spokesman for VW’s global group works council was quoted as saying.
Meanwhile, trade union IG Metall is seeking a 5% pay increase in the forthcoming negotiations.
Industrial action in the metal sector may commence in November, while strikes at VW are possible from January.
These details follow the supervisory board’s approval last month of Future Plan 2030, which includes approximately 50,000 group-wide job cuts, including management roles.
