VW employees in turmoil: reclaims and bonus chaos!

VW employees in turmoil: reclaims and bonus chaos!

A lot has had to happen at Volkswagen in recent times. Employees at the Volkswagen plants, especially in Kassel, are increasingly dissatisfied with the situation surrounding their bonus payment system. Many people find the reclaims and the issue of anniversary bonuses to be unfair. What is particularly explosive is that the company collective agreement was terminated at the end of 2024, which means that anniversary bonuses for 25 and 35 years of service should no longer apply. This contract resulted in an agreement between the board and the union that converted staggered bonus payments into one-off payments: 6,000 euros for 25 years and an impressive 12,000 euros for 35 years of service, but this is where the trouble begins for many employees.

While some employees received loyalty bonuses of over 18,000 euros in December 2024, they were informed in January 2025 that they would have to pay back part of the money. Many people find this extremely frustrating because they had already budgeted or even saved the money. IG Metall confirmed that Volkswagen wanted to reclaim the difference, based on the new collective agreement that has been in force since the beginning of 2025. It is unclear how many employees are affected by these repayments. In a precedent-setting case, such a claim even ended up before the Kassel district court, where VW was obliged to pay back 2,089 euros to a plaintiff who did not have to expect a retroactive tariff change. Volkswagen has appealed this ruling, and a company spokesman said it would comment promptly.

Collective bargaining and perspectives for employees

The collective agreement, which was reached after more than 70 hours of negotiations, at least offers some rays of hope for the employees. Around 100,000 employees protested on two days of warning strikes against the planned cuts by the VW board. The result now secures jobs and provides for sustainable investments in the future of the company. Redundancies for operational reasons are ruled out until the end of 2030, which gives employees a little planning security. Meanwhile, a revision of the pay system, which is due to begin in 2025, is expected with changes in 2027.

Training positions are also a big issue. Volkswagen has committed to offering around 600 training positions and places for dual students. The obligation to take on trainees is also in force again. In the collective bargaining to secure employment, which was gradually terminated, it is also important to create new regulations with the works council and the union. If no agreement is reached by mid-2025, the group will face additional costs.

Future planning under pressure

Volkswagen is not only facing internal challenges, but also external ones due to changes in the market. The IG Metall union and the workforce have successfully rejected plant closures and massive job cuts, including the right to dismissal from 2025. From January 1, 2031, there will also be a 5 percent increase in the pay scale. In addition, VW plans to modify anniversary bonuses and other bonuses to increase employee satisfaction and respond to changing market conditions.

The uncertainties surrounding the collective agreement and the protesting voices of employees show how important clear communication between company management and employees is. It remains exciting to see how the situation will develop and whether VW will be able to not only keep its workforce happy, but also offer new perspectives within the company.