The ongoing collective bargaining negotiations at the VW software subsidiary CARIAD have been stalling. With the expiration of the no-strike clause on January 28, 2025, the first warning strike became possible, through which employees sent a strong signal regarding their pay demands.

The warning strike was carried out for the first time in a hybrid form: Employees participated both on-site and digitally. After a rally, the event included a variety of activities such as a joint walk, games, and an informational session on IG Metall’s 11-point program for a modern, innovative, and fair industrial nation.

“We wanted to show that our work is valuable – and if it’s not being appreciated, we’ll spend our time on other things,” explained Malte Berroth, who is a confidant at CARIAD. Despite freezing temperatures, the atmosphere remained positive. “We had to heat things up a bit, but the participation was strong. However, dissatisfaction with the progress of negotiations within the workforce is clear.”

Stalled Collective Bargaining Talks and Harsh Budget Cuts

The previous pay agreements for 2023 and 2024 expired on December 31, 2024, but remain in effect until a new agreement is reached. In October 2024, IG Metall’s bargaining committee demanded a 7% pay increase, similar to the demands made for other companies within the Volkswagen Group.

However, initial negotiations show that CARIAD is pushing for no increase in pay. Moreover, previously agreed-upon terms are set to be watered down, and the promised negotiations for profit-sharing are to be postponed by two years. The company leadership justifies this by citing budget cuts and the new collective agreement at Volkswagen.

“We demand both a secure future and fair pay. We are calling for a 7% pay increase with a 12-month term, and we make it clear that this is the only real signal for our future!” emphasizes Malte Berroth.

IG Metall stresses: A freeze on wages would result in a real wage loss for employees due to inflation and rising costs. This is unacceptable. While pay increases have been implemented across the entire Volkswagen Group, CARIAD employees are being left empty-handed, even though they are working under high pressure on VW’s digital future.

Additional Uncertainty from Rivian Deal

The decision by Volkswagen to form a joint venture with the U.S. software startup Rivian has added further uncertainty. VW is investing 5 billion euros in the project. Many CARIAD employees only learned about the decision through the media. Many are now questioning whether software development will eventually be spun off from CARIAD and what impact that could have on their jobs. There is still no clear strategy from the company regarding its software subsidiary, which has only increased the uncertainty.

“We didn’t just strike for fair pay, we also wanted to show our solidarity as a workforce, especially when it comes to the future of our company,” emphasizes Malte Berroth.

IG Metall is taking a clear stance: Wage cuts will not secure the future. “If CARIAD is to play a key role in Volkswagen’s digital transformation, it will need motivated employees, fair compensation, and clear prospects for the future,” says the responsible trade union official, Sören Lieske.