Saxony state premier Michael Kretschmer has proposed extending Volkswagen employees’ standard working week from 35 to 40 hours as part of a broader effort to reduce costs and keep the automaker’s German factories competitive. The proposal comes as Volkswagen has yet to secure an industrial future for its EV-focused Zwickau plant beyond 2030.
Kretschmer, a member of Germany’s CDU party, is calling for a package of measures that could include renegotiating the collective agreement on working hours rather than directly cutting wages. His argument is centered on lowering hourly costs at German sites, which also face high energy prices.
The proposal runs against the position of IG Metall, Germany’s largest industrial union, which wants to retain the 35-hour week. The disagreement is unfolding alongside Volkswagen’s wider restructuring talks, as the group attempts to address excess production capacity and pressure from lower-cost Chinese competitors.
Volkswagen employs around 10,000 people across its three Saxony facilities, making it the state’s largest private-sector employer. Tens of thousands of additional jobs are tied indirectly to the company’s regional supplier network.
Zwickau is at the center of the debate. The factory specializes in electric vehicles, but Volkswagen currently has no confirmed production outlook for the site after 2030. Kretschmer has met with Volkswagen CEO Oliver Blume and supervisory board chairman Hans Dieter Pötsch, though no concrete solution has emerged.
Volkswagen has already agreed to cut more than 35,000 jobs in Germany by 2030, while further restructuring discussions are expected in 2026. A decision on Zwickau is anticipated in the coming months, with the key question being whether the plant will receive enough future vehicle production to remain viable after its current model cycle ends.
