Job security agreed for VW's battery subsidiary - Volkswagen secures jobs and raises wages at new battery plant

Volkswagen has opened a new battery plant in Salzgitter, producing cells for electric vehicles. The company has also secured a collective bargaining deal for its battery division, PowerCo. This agreement protects jobs and raises wages for nearly 2,000 workers until 2030.

The deal covers employees at PowerCo from 1 March 2026 until 31 December 2030. It guarantees no layoffs for operational reasons during this time. Workers will also receive a 5.5% increase in base pay.

Wage terms can be reviewed again starting 31 March 2027. The agreement focuses on stability as Volkswagen expands its battery production. While the Salzgitter site is operational, the company has not confirmed additional global battery plants by 2030.

Recent discussions have centred on cost-cutting measures and potential factory closures for vehicle assembly. However, the new deal ensures job security for PowerCo staff through the decade.

The agreement locks in protections for battery workers until the end of 2030. It also sets a wage increase and allows future pay negotiations after March 2027. Volkswagen's battery division now has clearer terms as electric vehicle production grows.