Volkswagen Steps Back From Blanket Wage Freeze as Union Talks Loom in Emden
Published on 11/10/2026 at 13:51 | Editorial boerse-global.de
Volkswagen has walked away from the idea of a company-wide pay freeze, according to a report by Der Spiegel, though the option of zero increases through 2030 reportedly remains on the table. The group declined to comment on the media report on Friday.
The softening comes as Europe's largest carmaker prepares to sit down with IG Metall on 24 November in Emden to negotiate over the collective agreements it has terminated and the demands tabled by both sides. Volkswagen has said its goal is lower labour costs and improved competitiveness, with talks set to resume in Zwickau on 15 December.
A court ruling adds to the pressure
The wage question is only one front. On Friday, the Braunschweig labour court ruled that Volkswagen must pay a dismissed manager roughly EUR 300,000 in back salary, covering about a year, while upholding the ordinary termination. The company intends to have the decision reviewed by the state labour court.
Those legal costs land against a balance sheet already under strain. Figures published on 29 October showed revenue of EUR 233.4 billion for the first nine months of 2026, but operating profit collapsed to EUR 0.1 billion from EUR 5.4 billion a year earlier. Special items weighed on the result to the tune of EUR 8.7 billion; stripped of those effects, operating profit came in at EUR 8.8 billion. Management described the numbers as creating an "immediate need for action."
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The Core brand group felt the squeeze too. Its operating result slipped to EUR 4.33 billion from EUR 4.72 billion in the prior-year period, with the operating margin thinning to 4.1% from 4.4%. For the full year 2026, Volkswagen is guiding to around EUR 315 billion in revenue and an operating margin of up to 1%.
The ID. Golf is on hold
Cost discipline has reached the engineering floor. Volkswagen Pkw paused development work on the electric ID. Golf on 30 October, and brand chief Thomas Schäfer told Reuters the company simply cannot afford the work at present. Development is meant to restart as soon as possible once the necessary investment is financed.
At Elli, the charging subsidiary, the realignment reportedly involves pulling out of wallbox sales and the construction of charging infrastructure for corporate customers. Job cuts are under negotiation, while the charging network, fleet solutions and green electricity offerings are to continue.
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Analysts re-enter the fray
Bernstein Research resumed coverage of Volkswagen on 5 November with a "Market-Perform" rating and a price target of EUR 80, giving investors a fresh reference point as the Emden talks approach.
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