Volkswagen Faces January 2027 Strike After Wage Collapse

The Volkswagen Group and IG Metall are on a collision course after Volkswagen terminated nearly all wage agreements last month. The union has set an end of October 2026 deadline to reverse that move and warns of mass strikes beginning in January 2027 if talks collapse.

Scope of the dispute and union demands

IG Metall is demanding a restoration of the cancelled agreements before resuming negotiations. The union says Volkswagen’s action reopened long-standing terms on working hours, holiday pay and other conditions that workers view as fixed parts of employment. Volkswagen counters that the economic conditions underpinning the 2024 collective bargaining deal have deteriorated and that keeping those terms unchanged is no longer viable.

Restructuring targets and potential job losses

Management ties the changes to a larger restructuring aimed at trimming costs and funding Volkswagen’s transition to electric vehicles. The company is targeting 20 billion euros in savings by 2030, with a further 11 billion euros expected from lower overheads. As part of the plan Volkswagen intends to eliminate 100,000 jobs and has indicated that up to four German plants could be closed.

The Volkswagen works council has claimed the executive board could freeze salaries for up to 660,000 employees worldwide through 2030. Volkswagen declined to comment on that specific figure.

Negotiation schedule, locations and likely impact

Negotiations on the cancelled agreements are scheduled to start on November 24 and continue on December 15, with Reuters reporting the dates and Volkswagen confirming them on its media site. A truce reached before January 1 would prevent strikes ahead of the union’s threatened January 2027 action.

• Emden plant: negotiations begin November 24
• Zwickau complex: negotiations continue December 15
• Hanover plant: identified as central to the transition plan
• Neckarsulm complex: identified as central to the transition plan

IG Metall’s threat carries weight because German automakers rely on highly skilled labor that cannot be quickly replaced. Volkswagen has proposed transfer companies, supported by the federal employment agency, to retrain affected employees and help them find jobs outside the group. Both sides are preparing for multiple outcomes as talks approach.