Volkswagen crisis reaches Škoda Auto as pay freeze looms until 2030

The crisis facing the Volkswagen Group is now affecting Czech carmaker Škoda Auto. Although strong sales have made it one of the group’s key performers, the company will also have to freeze employees’ wages until 2030. Jaroslav Povšík, head of the Škoda trade unions, confirmed the plan in the union magazine Škodovácký odborář. The unions intend to oppose the move.

According to union representatives, the company’s management has for the first time openly acknowledged to employees that the situation is serious and could threaten factory workloads and jobs in the future. Škoda Auto employs around 36,500 people, including agency workers.