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28 Nov 2025

Framework Agreement 2032: US Automaker Ford and Seitz Reach Deal with IG Metall and Works Council

"Law firm Seitz advised US automaker Ford in concluding a comprehensive package with IG Metall and the works council through end-2032. The agreement foresees a reduction of 2,900 FTE by end-2027, possible further restructuring to 2032, primarily via voluntary programs, with limited operational redundancies as a last resort; Ford guaranteed severance and pension protections."

The law firm Seitz advised US automaker Ford in negotiations with IG Metall and the company's works council. Ford has successfully concluded negotiations with IG Metall and the works council on a comprehensive package running until the end of 2032, an outcome the parties announced at works meetings in Cologne attended by more than 10,000 employees. The package to realign the company foresees a reduction of 2,900 full‑time equivalents by the end of 2027, with additional restructuring measures possible through 2032. The workforce reduction is intended to be implemented primarily through a multi‑stage voluntary programme; for the first time, operational redundancies are provided as a last resort. In return, Ford committed to a protective umbrella for severance payments and pensions for all employees. The talks were held against the background of an existing employment guarantee at Ford through 2032. Movement in the negotiations followed the termination of an insolvency protection by the American parent company in recent months. IG Metall employed strikes at the Cologne site for the first time during the process. The parties have now reached a socially acceptable solution that provides the company with the necessary scope for action. Throughout the project, Ford relied on the expertise of the specialist employment law firm Seitz; Seitz supported Ford's lead negotiator, Marcus Wassenberg, in all phases of the talks and provided comprehensive advice on labour law and negotiation strategy. 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 — all members of the firm's experienced employment law team.
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