Volkswagen is facing a crisis, with the next round of collective bargaining scheduled for Thursday. The union and Germany's IG Metall have proposed measures such as wage cuts, including temporarily depositing the next pay raise into a fund instead of direct payment to reduce costs, prevent layoffs and factory closures, and achieve "flexible reduction of working hours without layoffs."

In response, the union demands the reinstatement of the job security agreement canceled by management in September, covering six factories in western Germany and three in Saxony, eliminating the possibility of layoffs due to operational reasons. The IG Metall regional manager estimates this future concept could save approximately 1.5 billion euros in labor costs. However, in September, Volkswagen not only canceled the job security agreement but also announced the closure of some German factories, which would also affect electric vehicle production.

It remains unclear whether Volkswagen Group will accept this proposal, with initial reactions being cautious and preferring internal discussions during collective bargaining. IG Metall and the works council have slightly different communication strategies, with union representatives pressuring with strike threats, while the Volkswagen works council chairman's statements are relatively moderate, proposing a concept that does not oppose layoffs but insists on socially responsible implementation. Employee representatives also suggested management forgo bonuses and donate them to the fund. If no agreement is reached by the end of November when the labor contract expires, Volkswagen may face strikes and other labor actions starting December 1.