Volkswagen plans to freeze salaries worldwide through 2030 under CEO Oliver Blume. The plan would affect 660,000 employees. It also proposes cuts to bonuses and variable pay as part of a cost-cutting strategy to improve operational efficiency and protect margins amid challenging market conditions.
Sueddeutsche Zeitung first reported the proposal, which the company’s works council confirmed. The works council called management’s approach “absurd” and expects significant resistance. The IG Metall trade union said pay is a matter for negotiation, not executive decree.
Relations between labor representatives and management have reportedly soured as Volkswagen advances what it describes as the most radical restructuring in its history.