Volkswagen and Union Dispute Intensifies

Volkswagen has firmly rejected cost-saving proposals put forth by IG Metall and the works council, aimed at achieving a 1.5 billion euro savings. The company argues that the plan does not offer sustainable financial relief. In response, the union expressed disappointment, insisting their proposal meets the savings target. Volkswagen, however, demands a 10% wage cut and warns of possible plant closures due to overcapacity and rising costs.

The union is pushing back, insisting on employment and location guarantees. As the peace obligation expires, warning strikes are anticipated from December 1. The intense negotiations reflect the broader struggles facing the automotive industry, including declining EU car sales and increased competition. Despite the tension, both parties are set to continue collective bargaining on December 9. This standoff underscores the escalating tariff conflict, as Volkswagen maintains its stance amidst calls for heightened restructuring efforts.