VW's works council is demanding a recognition premium for all tariff employees after the company revised its 2025 cash flow upward to six billion euros. Works council chair Daniela Cavallo justifies this with the workforce's joint cost discipline. The premium could be paid out in May 2026.
Volkswagen announced on January 21, 2026, that the net cash flow for the 2025 fiscal year stands at six billion euros, rather than around zero as previously assumed. Finance board member Arno Antlitz attributed this to intensive cost work in development, investments, and inventory management. In an internal interview, he stated that the improvement in net cash flow was the result of 'intensive cost work' in development, investments, and inventories. Antlitz admitted that the scale of the improvement was surprising and mainly occurred in the second half of 2025. The cash flow simply describes the money left in the company's coffers and influences factors such as the credit rating and dividend policy. However, it has nothing to do directly with sales or profit and can be affected by measures like shifting payments. Analysts doubt the sustainability of the influx, seeing it mainly arising from inventory reduction and faster incoming payments. In light of this improved financial position, the overall works council is demanding a recognition premium for all in-house tariff employees, including those in Saxony. Works council chair Daniela Cavallo justified the initiative in an extra edition of the works council newspaper 'Mitbestimmen': 'If everyone has now delivered so well together in terms of cost discipline, a recognition premium is only fair. We are demanding it for all in-house tariff employees – including Saxony.' The premium is to be paid in May 2026 and partially replace the omitted flexible tariff bonus. This bonus is cut for 2026 and 2027 as part of the savings package agreed upon by IG Metall and the company in the Christmas compromise at the end of 2024 after tough negotiations. The November prepayment on the bonus, amounting to nearly 1900 euros, remains untouched. The flexible bonus is to return in stages only in 2028. The amount of the premium remains open and must be negotiated with the board. Initial indications of the status of the talks are expected at the works assembly on March 4, 2026, at the Wolfsburg parent plant. VW employs more than 120,000 workers in its plants in Lower Saxony, Hesse, and Saxony. The debate gains added significance due to the ongoing works council election campaign in March 2026, in which opposition lists are calling for stronger workforce participation. The company remains under significant cost pressure: By the end of the decade, around 35,000 jobs are to be cut in Germany, with costs to be reduced by 15 billion euros annually, while high investments in electromobility and software are required.
