Volkswagen AG’s works council says the company plans to freeze salaries for its global workforce of 660,000 employees until 2030. Management has not publicly confirmed the proposal.
The plan is part of a broader cost-cutting strategy under CEO Oliver Blume and reportedly includes cuts to bonuses and other benefits.
Labor representatives strongly oppose the proposal. The works council called it “absurd,” while the IG Metall union said pay must be determined through negotiation, not by company decree.
The dispute comes as relations between management and labor deteriorate amid a major restructuring effort.