Negotiations between Volkswagen and the union over cuts to the automaker’s German operations will resume this Wednesday after a short break, reflecting intense efforts to reach a deal before Christmas and avoid widespread strikes in 2025.
The pause follows 36 hours of talks that began Monday as both sides seek to end a bitter standoff over possible factory closures and mass layoffs in Germany that have plunged Europe’s biggest automaker into its biggest crisis in years.
A deal before Christmas is still possible, a person familiar with the talks said, while cautioning that the complexity of the negotiations, which began in late September, means there is no guarantee the talks will be successful.
German union IG Metall, which has vowed strong resistance to any factory closures and staff cuts, said it would provide an update on the discussions based on any new developments. But the entity reported that it was unclear when that might happen.
The two sides have argued over what Volkswagen says are the cost cuts needed to be able to compete with nimbler and cheaper Asian rivals, even as the planned transition to electric vehicles has lost momentum.
Both remained firm on their points, with unions opposed to any factory closures, while VW is not ruling them out, citing the shrinking European market and the need to reduce excess capacity.
Germany’s most powerful union hopes to reach a deal this week to give workers peace of mind before Christmas, threatening to step up strikes in the new year if there is no deal with the carmaker.
Source: Terra
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