Volkswagen pay freeze to 2030: IG Metall claims, wage talks and employees affected
IG Metall says Volkswagen may block pay rises until 2030, while the carmaker disputes the reports. Talks are due in November.
More than 660,000 Volkswagen employees worldwide could face a multi-year pay freeze. According to Germany’s IG Metall union, management intends to forgo salary increases until 2030. If enacted, the plan could erode workers’ purchasing power by at least 10% through inflation, the union estimates. Volkswagen has not confirmed the proposed restrictions.
German trade publication AUTOHAUS reported the possible freeze on October 19, 2026, citing the dpa news agency. IG Metall claims Volkswagen instructed human resources departments worldwide not to grant pay rises through 2030. The European and Global Works Councils informed staff of the plans on the company intranet. According to the union, the instructions have been in effect since early October.
Volkswagen declined to confirm the report. A company spokesperson said it does not comment on such speculation. Management had previously opposed IG Metall’s demand for a 5% wage rise, pointing to difficult conditions in the automotive industry and the need to cut costs.
The latest dispute follows an agreement reached in late 2024. Employees then accepted significant concessions in exchange for protecting jobs and manufacturing sites. In particular, a collectively agreed pay increase of more than 5% was deferred until January 1, 2031, with the money directed towards financing restructuring.
However, the 2024 agreement did not prohibit all subsequent wage increases. IG Metall said collective bargaining from 2027 onwards could still deliver additional rises before 2030. If the newly reported management plans are confirmed, precisely that option could be at risk.
The union has already demanded a 5% wage increase for a 12-month term. The next round of negotiations between Volkswagen and employee representatives is expected in late November. The two sides enter the talks with opposing priorities: management wants lower costs, while IG Metall wants to protect workers’ purchasing power.
Pressure on Volkswagen extends beyond wages. The group continues a large-scale restructuring and workforce reductions. The future of some German plants beyond 2030 also remains uncertain. In September, the union said no decisions had been made to close factories in Emden, Hanover, Zwickau or Neckarsulm, although their future production allocations are not guaranteed.
A freeze in nominal wages is not the same as an outright pay cut. Employees may keep receiving the same amount, but rising consumer prices reduce what it can buy. The projection of at least a 10% loss comes from IG Metall and depends on future inflation.
No final decision on Volkswagen wage increases through 2030 has been announced. Much now depends on negotiations with employee representatives. It remains unclear which divisions and categories of workers any restrictions would cover. It is premature to describe a group-wide freeze as already implemented.