Job security agreed for VW's battery subsidiary - Volkswagen secures landmark labor deal for its EV battery division through 2030

Volkswagen has inaugurated 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 safeguards jobs and increases 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 emphasizes 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 focused 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 secures 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.