On March 11, CARIAD's management announced plans to reduce 1,600 positions at the VW software subsidiary. The works council immediately rejected this figure in a press release, calling it "completely fabricated." A recent collective bargaining agreement between IG Metall and CARIAD included a "voluntary program," but it did not specify any concrete job reduction numbers.
The press release further emphasized that the agreement also included the commitment to engage in additional negotiations with the goal of securing more jobs and employment opportunities. "The actions of the management board contradict and undermine these agreements," stated the works council.
Criticism from IG Metall
Jan Otto, head secretary of IG Metall Berlin, expressed outrage at CARIAD's actions. "It’s unbelievable what's happening here. Clear agreements were made in a collective bargaining agreement, and now the company is breaking those agreements shortly after," said Otto. "Collective bargaining agreements are a vital asset. If agreements are immediately disregarded after a deal is struck, our social partnership is at risk. I urge the company to honor these agreements."
CARIAD's Berlin site, which employs around 1,400 workers, plays a central role in the VW Group's brands. The site is responsible for developing software architecture, design, and driver assistance systems. Otto emphasized, "CARIAD as a whole, and our Berlin site in particular, are not only an integral part of what will ultimately help VW emerge from its crisis but also an essential element of Berlin's industrial landscape. I am simply not willing to give this up without a fight."
Unclear Motives Behind the Announcement
As early as December 2023, an outline agreement between CARIAD and IG Metall had clarified that any fundamental changes to the company and its processes needed to be in place before any job cuts could be considered. Such cuts must always be based on clear justification that demonstrates the actual elimination of work and the associated need for staff reductions.
The reasons behind CARIAD's sudden announcement of job cuts remain speculative. However, the works council believes the figure of 1,600 jobs may not stem from a clear company strategy, but rather from an attempt to influence public opinion during the negotiations over the voluntary program.
The works council described the release of these figures as "negligent" and a disregard for the right of co-determination at CARIAD. In a time when the Berlin site, with its highly skilled workforce, is making a significant contribution to the company's success, this communication is not only baffling but also unnecessarily damaging.
IG Metall Berlin Stands Firmly by the Workers
IG Metall Berlin stands resolutely with the employees and will continue to fight for the enforcement of the agreed-upon collective bargaining agreements.
