Volkswagen remains far from deal in union talks

Volkswagen AG (OTC:VWAGY ) is currently engaged in intensive negotiations with labor representatives over proposed layoffs and factory closures, with little sign of an agreement being reached. The discussions, which entered their second day on Monday, have Volkswagen (ETR:VOWG_p ) brand CEO Thomas Schäfer and human relations chief Gunnar Kilian involved, and they are expected to inform the group's management board that a deal is unlikely in the near future.

The ongoing talks in Hanover are set to continue late into Tuesday night. Should there be no significant progress by early Wednesday, IG Metall's board is ready to consider a vote for 24-hour strikes at Volkswagen factories in January. This follows two instances this month where thousands of VW workers left their jobs to protest against the management's proposed cutbacks. Both parties had hoped to reach an agreement by Christmas, but the complexity of the negotiations, which intertwine with wage discussions and the company's five-year planning, suggests that this goal may have been overly optimistic.

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Source: Investing.com