VW’s 100,000 Job Cut Plan Overshadows Divergent German Industry Trends
28.06.2026 - 19:50:48 | boerse-global.de
While Volkswagen prepares to shed up to 100,000 positions and close four domestic plants by 2030, other corners of German industry are facing their own battles — and a few glimmers of hope. The contrasting picture emerged from a series of regional developments reported by the DGB and IG Metall in recent weeks.
The DGB district in Altenburger Land used an end-of-June meeting to praise newly elected works councils across the region. Chairman Thomas Jäschke called employee representation “a pillar of social market democracy” and pressed politicians to take action against the growing number of companies abandoning collective bargaining agreements. Without such measures, he warned, the structural transformation would not be socially sustainable.
Yet in the automotive sector, the mood is far more tense. At Mercedes-Benz, management unilaterally postponed a contractual special payment — the so-called transformation component, worth 18.4 percent of a monthly salary — that had been scheduled for July 2026. The decision came without any negotiation with the works council. Ergun Lümali, chair of the group-wide works council, condemned the move sharply, insisting that economic difficulties are not the fault of the workforce. At the Bremen plant, which employs about 11,500 people and is running at good capacity, workers have already staged protests. The works council flatly rejects any demands for longer hours without pay compensation.
The most dramatic proposal comes from Volkswagen. CEO Oliver Blume reportedly aims to eliminate up to 100,000 jobs and shutter four German factories — sites in Hanover, Zwickau, Emden and Neckarsulm — by 2030. IG Metall and the state of Lower Saxony have vowed resistance. The supervisory board is scheduled to discuss the plans on July 9, 2026. Salzgitter’s mayor Frank Klingebiel pointed to existing job guarantees that date back to 2024.
Smaller suppliers are fighting for survival too. In Rieden, the IG Metall Allgäu chapter is battling the closure of a specialised plant owned by the Kern Liebers Group. The move would affect 132 workers. The union has submitted a future concept and is demanding a collective agreement to protect employees. The company has remained tight-lipped about the ongoing talks.
In Krefeld, internal conflict has split the local works council at stainless-steel producer Outokumpu. The local IG Metall does not recognise Daniel Boecken, who was elected works council chair in March 2026, because he does not belong to the union. The union insists that all works council members must be IG Metall members. Boecken counters that his election was democratic.
Meanwhile, the defence industry is emerging as a potential bright spot. After a multi-billion-euro frigate project was halted, the union has called for national shipyards and suppliers to be included in future large orders — a move that would affect Rheinmetall sites as well. Speculation is circulating in Bremen about a possible expansion of Rheinmetall onto a former ThyssenKrupp site, which could create up to 900 new jobs.
