Volkswagen Plans Salary Freeze Until 2030
Volkswagen executives plan to freeze salaries until 2030 as part of a radical restructuring effort, sparking backlash from labor representatives and trade unions.
Volkswagen Group is planning a global salary freeze until 2030 as part of a radical restructuring effort led by CEO Oliver Blume. Internal documents revealed by the Global Works Council indicate that the proposed management guidelines, effective from the fourth quarter, also include cuts to jobs, benefits, special payments, and variable pay.
Labor representatives have reacted sharply to the proposal. The Global Works Council described the management's approach as "absurd" and "rather unrealistic," noting that the lack of pay raises could result in a 10% income loss for employees due to inflation. The trade union IG Metall further challenged the move, asserting that pay development is decided through negotiation rather than executive decree.
Volkswagen declined to comment on the specific speculation regarding the freeze. A company spokesperson stated that upcoming talks scheduled for later this week will serve as the forum for labor cost proposals.
