July 9 VW Board Meeting to Decide Fate of 100,000 Jobs as German Industry Faces Triple Squeeze
28.06.2026 - 00:41:18 | boerse-global.de
German industry is bracing for a watershed moment on July 9, 2026, when Volkswagen’s supervisory board is expected to decide a new strategy that could eliminate up to 100,000 jobs worldwide and close four domestic plants. The meeting comes as a wave of cost-cutting, pension reform proposals, and legal clarifications on mass layoffs hit the country’s economic landscape simultaneously.
At Volkswagen, reports of the potential cuts have triggered deep anxiety among workers. The IG Metall union and VW’s works council have denounced the rumors as irresponsible threats and vowed to fight any such plans “with all means.” The supervisory board, where employee representatives hold a majority, has already signaled it will not accept attacks on the VW Law or co-determination rights. A final decision on the company’s future direction is expected on July 9.
Meanwhile, Mercedes-Benz has enacted stricter savings measures. Around 90,000 collectively bargained employees in Germany will have to wait until 2027 for a so-called transformation component payment worth 18.4 percent of a month’s salary, originally scheduled for July 2026. Management cited uncompetitive labor costs as the reason. The company’s works council criticized the move as one-sided but acknowledged it is permissible under the collective agreement. Mercedes’s financial performance has deteriorated sharply: first-quarter 2026 operating profit fell 17.2 percent, following a drop from €10.4 billion to €5.3 billion in 2025. Adding to tensions, supervisory board chairman Brudermüller has proposed introducing a 40-hour work week, replacing the current 35-hour week. Works council chief Ergun Lümali flatly rejects any extension without wage compensation. Formal negotiations have not yet begun and fall under the purview of IG Metall and the employers’ association.
Beyond the automotive sector, a national debate over retirement age is heating up. On June 23, 2026, a government-appointed pension commission submitted 33 recommendations, including a gradual increase in the retirement age linked to life expectancy—potentially toward 70—and abolishing the “pension at 63” option. The commission also proposed a mandatory funded supplementary pension of two percent of gross wages. Business groups praised the plan, while unions reacted with sharp criticism. The German Trade Union Federation (DGB) countered on June 26 with its own proposal: raise the pension level from 48 to 53 percent of average earnings, funded by higher contributions and tax subsidies on high incomes and wealth, without raising the retirement age. Experts warn that both reform models would drive up non-wage labor costs.
Clarity on mass layoff procedures came from two rulings by the Federal Labor Court (Bundesarbeitsgericht) in 2026. On April 1, the court ruled that dismissals without a valid mass-layoff notification are void. On June 25, it refined the requirements, stating that minor errors in the notification do not automatically invalidate the dismissals—provided they do not hinder the Federal Employment Agency’s placement efforts.
In the retail sector, department store chain Galeria secured a new credit line of up to €160 million on June 26 from financial services provider Gordon Brothers for restructuring outside insolvency proceedings. However, industry experts see the situation as precarious: around 30 of the remaining 83 outlets are considered at risk. The Verdi union criticized the ongoing uncertainty for employees at the chain.
