German automotive big Volkswagen on Tuesday mentioned it was scrapping six labor agreements as the corporate’s standoff with unions and its works council intensified.

“The corporate sees itself compelled to take action due to the present financial challenges,” Volkswagen mentioned in a press release translated by CNBC.

Volkswagen mentioned it was ending its employment safety settlement, which has been in place for its German workforce since 1994, in addition to a wage settlement for workers with specialist or management positions.

It additionally mentioned it was scrapping agreements for non permanent employees and people stipulating that the corporate should tackle apprentices who’ve accomplished their coaching.

“The present section contributes to uncertainty. We are able to counter this if we create future proof views for our firm quickly. That applies to the corporate in addition to the wage settlement ranges,” Volkswagen human assets chief Gunnar Kilian mentioned within the assertion.

Job safety for workers stays in place till 30 June 2025, Volkswagen mentioned, including that it will now begin negotiations with employee representatives.

In a press release launched Tuesday, VW Works Council head Daniela Cavallo reiterated that there could be pushback to Volkswagen’s plans.

“Now the corporate has truly carried out what we’ve been anticipating for days. And it stays the identical: we’ll put up a fierce resistance to this historic assault on our jobs. With us, there will likely be no layoffs,” she mentioned.

Thorsten Gröger, lead negotiator at commerce union IG Metall, mentioned Tuesday that there will likely be objections to the tip of the employment safety settlement and the potential closure of crops particularly.

“A job assure shouldn’t be solely wanted throughout good instances, however particularly within the present problem it ought to be an airbag for colleagues. Now, when the highway is slippery and there are an increasing number of obstacles on the highway, VW is taking away this airbag. We won’t settle for this silently and with out motion,” he mentioned in a press release translated by CNBC.

It comes as European automobile giants deal with an ideal storm of challenges on the trail to full electrification.

Volkswagen final week flagged it was not in a position to rule out closing crops in its house nation of Germany — a measure that was beforehand thought of off the desk.

The carmaker mentioned on the time that it was performing with the intention to safe “urgently wanted structural changes for larger competitiveness within the quick time period.”