Finance
VW, workers clash in latest round of talks over factory shutdowns
Published by Global Banking & Finance Review®
Posted on December 9, 2024
2 min readLast updated: January 27, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on December 9, 2024
2 min readLast updated: January 27, 2026
Volkswagen and labor unions are in tense negotiations over wage cuts and plant closures, leading to strikes at major German sites.
FRANKFURT (Reuters) - Volkswagen and labour representatives will hold a fourth round of talks over wage cuts and possible plant closures, in what has become an increasingly bitter standoff that will be flanked by strikes at the carmaker's main German sites on Monday.
The latest round of negotiations, which initially kicked off in September, comes as Europe's largest carmaker seeks ways to radically cut costs in Germany to better compete with cheaper Asian rivals that have entered its home market.
Negotiations will start at around 1230 CET, while workers will stage 4-hour strikes across nine of Volkswagen's German sites, the second walkouts in a week.
"Perhaps this will bring the VW Board of Management to its senses. Otherwise we will continue to tighten the thumbscrews," the IG Metall union said in a handout to employees on Friday. "But then it will get really, really uncomfortable."
Workers, who flat out dismiss any cuts to wages or plant closures, can crank up the pressure by eventually staging 24-hour strikes and even open-ended ones in the case of a positive ballot.
Volkswagen, in turn, insists that capacity and wage cuts are needed because demand for cars in Europe has fallen while costs in Europe's top economy make it impossible for the group to compete with new rivals.
(Reporting by Christoph Steitz; Editing by Kirsten Donovan)
The main topic is the negotiations between Volkswagen and labor unions over wage cuts and potential factory shutdowns.
Workers are striking to protest against proposed wage cuts and potential plant closures by Volkswagen.
The negotiations could lead to significant cost-cutting measures for Volkswagen, impacting its competitiveness in the European market.
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