Volkswagen and powerful trade unions are set to begin talks regarding pay, in discussions that could significantly impact job cuts and potential plant closures in Germany, Christina Mann reported for Reuters.
Tensions are running high as the threat of plant closures—announced earlier this month—has created conflict between Volkswagen and IG Metall. I Photo: Volkswagen
Tensions are running high as the threat of plant closures—announced earlier this month—has created conflict between Volkswagen and IG Metall, a union that has pledged fierce opposition to such actions.
At the same time, IG Metall is tasked with negotiating new labor agreements for VW's core workforce of 130,000 employees in Germany, following the automaker's decision to end long-standing agreements that had protected jobs at six of its western German plants since the mid-1990s.
Volkswagen has cited the high energy and labor costs in Germany, Europe’s largest economy, as a competitive disadvantage compared to European and Chinese rivals, who are rapidly expanding in the continent's electric vehicle market.
The talks occur as Germany’s entire industry struggles with high operational costs, labor shortages, and increased competition, prompting industry leaders like BASF and Thyssenkrupp to scale back activities.
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