Intense Wage Talks: VW and IG Metall in Stalemate

Volkswagen and the labor union IG Metall are locked in intense negotiations over wage cuts and job security. The talks, taking place in Hannover, aim for a resolution before Christmas. Volkswagen is proposing a 10% wage reduction and potential plant closures, affecting 130,000 employees. IG Metall, however, firmly rejects any wage cuts and demands the preservation of all existing locations.

The situation is tense, with both sides having engaged in a grueling 13-hour negotiation session. Despite efforts to reach a compromise, significant differences remain. IG Metall has emphasized the need for job security and is pushing for a future fund and cost relief measures totaling 1.5 billion euros.

As the fifth round of negotiations unfolds, the union has warned of possible escalation by 2025 if no agreement is reached. Both parties are under pressure to find a solution quickly, with the specter of more severe actions looming. The ongoing dispute highlights the challenges facing the automotive industry, as companies like Volkswagen navigate economic pressures and labor demands.