Volkswagen's union deal cuts tens of thousands of jobs; will that save the icon?

The union deal is therefore both an economic decision and a strategic signal. In Germany's co-determined corporate model, workers' representatives sit on the supervisory board, so a mass headcount reduction cannot happen by fiat; it requires negotiated agreement. By reaching a deal, Volkswagen's management has chosen negotiated restructuring over confrontation. That approach limits disruption and preserves labor peace, but it can also lock in compromises that prevent a clean break from the past.