Why are Volkswagen labor so expensive?

Sure, if it takes a long time to get to the affected area, replace the seal(s), and reinstall all the components that are in the way, the final tally can easily go over a grand...

This is not a VW only issue.  Many cars and engines from other manufacturers could have similar designs and be just as costly to repair.

It depends on the source of the leak.  If it is a main seal, there is a lot of labor involved.

expensive lol lucky you dont own a ferrari or a rolls royce , simple rule is because they can . whers the oil leaking for , the rocker cover , or maybe the oil pan or maybe from the final drive !!!

Where is the oil leak coming from? Volkswagens (and most German cars) are not easy to work on and if your oil leak is from the rear main seal, it will be expensive regardless of the car. They design cars that are a nightmare to work on. Most brands design for a world market; German car companies design their cars for Germans. Your car is made in Mexico, but it still a German design all the way down to the engine and components. I have a 2015 Jetta that is having issues that I've never had with any of the  Japanese cars I have owned. Years ago, I owned a GTI that had it share of problems. I thought that cars have improved dramatically over the years and VWs look really nice. Why don't I give them another chance? First of several issues arose just after 100K miles. So spoiled by Toyota and Honda reliability, these little issues are a big deal. Now, fuel system issues like the GTI I owned decades earlier. Yeah, I won't be buying another. 

Update: I forgot to add.... Not just any shop wants to or will work on a Volkswagen. An accurate diagnostic requires Renntech software for VW cars. This also applies to VW owned brands, Audi, Porsche, Lamborghini, Bugatti, Bentley, etc.  For an accurate diagnostic of your VW, you need to find a shop that has the software.. which last I checked was $200-300, This is why many shops won't even touch a VW. I have a different mechanic for my VW than I do for my other cars. In fact, my usual mechanic won't even touch my Jetta. 

just wait until you need an exhaust system! VW is one of the few cars that can't use after market exhaust systems. Codes such as P0420 for the catalytic converter will constantly set and you won't be able to pass an emission test. 

Could be a rear oil seal leak.  The transmission has to be removed to fix the leak.  It is an expensive repair on ALL cars.

The rate for ANY mechanic now costs more.  Any shop can do the work, not just VW.   $1000 is an estimate-it could be less depending where the problem is AND "IF" THEY WANT TO WORK ON YOUR CAR.  "They do not want to do it." Take a hint.
.Me, I don't want to do it, so I estimate $1500.   If you are so stupid to pay that amount then yeah I will do the work. It is easy cash money for an easy "pain in the asss" job.  It is more of a Janitorial job rather than a mechanical repair type job.
. Personally with my leakers....I go to the car washes that have the "Wands" that you direct the soapy water and blast the car.   Then I get out of the car with engine off- open hood and cover the distributor with a plastic bag as the electrics do not need to get soaking wet.  Now I can see the oil leak on the engine and on the oil pan.  Put the wand on hot soapy water and blast the engine to get the oil off...and off the oil pan.  It is clean.  I do not shoot down the air intake air cleaner nor anything else.  Just engine and transmission with the soapy water and that is it. Wash off valve cover too...as that is where it leaks most of the time.
Start the car and drive out of car wash.
Clean enough to eat off of.  Cost me $2. at most.  What oil leak?  I will worry about it when it is serious.
.So I earn $1498.00. for an 1/4 hour of "work"  
Mine leaked some, nothing major as domestic cars leaked more AFTER 1 MILLION miles.   Am I concerned?  Not so long as the car wash exists. It is NOT REAR SEAL.  More than likely valve cover gasket...or a "sloptard" dumped oil on the engine block and gravity takes it down to lowest point.  

SO BLAME GRAVITY.
Besides they have rear seal pullers. so it is out and in REAL QUICK hardly a job.

All mechanics are expensive. You have a 14 year old car. You can expect to start getting bills like that for it. I also have an older car. If the mechanics  manage to fix anything on it for less than $500, I feel like I got off easy.

Go to three shops. 
Get three estimates. 
Think about it. 

Where is the leak coming from? 

Front crankshaft seal? 
Rear crankshaft seal? 
Oil pan gasket? 
Another place? 

The repair cost depends on the problem that is causing the oil leak.
If the issue is that the oil pan is not screwed in properly, $1000 is VERY excessive.
If the repair is much more extensive, $1000 isn't excessive.

VW dealers will be the most expensive. Visit a couple of VW specialists who are certain to charge less. If the leak is minimal forget about it until you trade your car in. Just be sure to watch the dipstick.

take any car to a dealer mechanic and it is expensive

i needed 6 exhaust valve seats for my 220 Mercedes Benz MB wanted 100 Pounds each

took it to my local engineering shop Seats and Fitment for 75 Pounds and an extra 6 pounds if i wanted Hardened seats

Guess who got the Job