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28 Feb 2026

Framework Agreement through 2032: Ford and Seitz Secure Comprehensive Package with IG Metall and Central Works Council

"Law firm Seitz advised US automaker Ford in reaching a comprehensive agreement with IG Metall and the central works council covering restructuring through 2032. The package foresees a reduction of 2,900 FTE by end‑2027, possible further measures through 2032, primarily via voluntary programs, with redundancies as a last resort and protections for severance and pensions."

Seitz advised US automaker Ford in negotiations with IG Metall and the company’s Gesamtbetriebsrat (central works council), representing Ford in the talks that produced the comprehensive agreement announced to employees. The parties confirmed at works meetings in Cologne, attended by more than 10,000 employees, that they had successfully concluded negotiations on a comprehensive package running until the end of 2032. The package sets out a workforce reduction of 2,900 full‑time equivalents by the end of 2027, with the possibility of further restructuring measures through 2032. The reduction is to be implemented primarily through a multi‑stage voluntary programme; for the first time, dismissals for operational reasons are provided as a last resort. In return, Ford has guaranteed a protection framework covering severance payments and pension arrangements for all employees. The negotiations unfolded against the backdrop of an existing employment protection commitment to the end of 2032. Following the withdrawal of an insolvency protection by the US parent company, talks intensified in recent months. IG Metall staged strikes at the Cologne site for the first time in this dispute. The parties ultimately reached a socially acceptable solution that grants the company the necessary room for manoeuvre. Seitz represented Ford with a team composed by: Dr. Stefan Seitz, Dr. Maximilian Schmidt, Dr. Timo Pulat, Lisa Schönberger, Marvin Mergelsberg, Dr. Marc Werner, Dr. Shirin Imani, Dr. Matthias Böglmüller. The firm’s team acted as the experienced employment law counsel throughout the project, supporting Ford’s negotiating lead Marcus Wassenberg in all phases and advising comprehensively on labour law and negotiation strategy.
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