Job Security Agreement Reached for VW Battery Subsidiary Employees – PowerCo
SALZGITTER (dpa-AFX) – Job security is to be guaranteed for the approximately 2,000 employees of Volkswagen’s battery subsidiary PowerCo until the end of 2030. This is stipulated in a new collective bargaining agreement negotiated between PowerCo and the IG Metall union, according to a statement from the union. The agreement is set to run from March 1, 2026, to December 31, 2030. “During this period, compulsory redundancies are strictly excluded,” IG Metall announced.
According to IG Metall, the negotiation result will take effect if it is accepted by both parties to the agreement by February 28.
Sebastian Krapoth, Chief Human Resources Officer at PowerCo, stated that the agreement addresses the current challenges facing the battery industry and, by postponing the pay increase, strengthens the company’s future prospects and competitiveness.
Krapoth said,
It also provides planning certainty and is an important signal to our workforce,
“We are taking a similar approach to Volkswagen AG, ensuring that we can continue to pursue our ambitious growth targets consistently.”
IG Metall: Reliability for the Workforce
Volkswagen began its own battery production at the Salzgitter plant last December. Construction of the cell factory on the site of the former VW engine plant had been underway since July 2022. More than one billion euros have been invested so far.
The agreement reached provides reliability for both the workforce and the location, said Alina Roß, lead negotiator for IG Metall Niedersachsen and Sachsen-Anhalt, in a statement. Additionally, a 5.5 percent increase in pay scales is to be agreed upon. However, this increase will not take effect immediately, but will be deferred until April 1, 2031. This pay agreement can first be terminated as of March 31, 2027./len/DP/jha
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Job Security Agreement Reached for VW Battery Subsidiary Employees – PowerCo, source
