Volkswagen's restructuring talks with labor leaders hit a snag

Investing.com -- Volkswagen (ETR:VOWG_p )'s ongoing discussions with labor leaders about a restructuring plan for its German operations have run into some obstacles.

According to union IG Metall, disagreements persist on key issues after four days of intense negotiations. The talks, which began on Monday, are centered on the automaker's proposed cost-cutting measures.

Both Volkswagen and the union have pledged to continue the discussions, which entered their fifth round this week following several weeks of inconclusive talks. The company is aiming to make its domestic operations more competitive by reducing pay, cutting capacity, and eliminating bonus payments.

However, worker representatives are opposed to factory closures, mass layoffs, and lower wages.

IG Metall expressed its desire for a solution before Christmas, provided it is in the best interests of its members. This would require a more comprehensive job security plan, benefiting workers, regions, and families.

The union also warned that the negotiations could fail due to ongoing disagreements on central issues, but noted that the talks are progressing constructively and have yielded some agreements. IG Metall urged Volkswagen to provide clarity as soon as possible, emphasizing that there is still a long way to go for the employees after four days of discussions.

Volkswagen indicated that the decision to continue the talks was driven by the complexity and the variety of topics being addressed.

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Source: Investing.com