Germany: Difficult talks at VW

VW faces intense discussions with worker representatives amid accusations of lacking a future vision. VW is not alone in having major problems. The whole of the European car industry is being hit hard, with knock-on damage for undertakings in the supply chain.

Why it matters: The outcome of these talks could significantly impact labor relations in Germany. VW is a bellwether for much of Germany industry. What happens in VW can influence labour relations across much of the country. If VW pushes ahead and closes plants, then that will open a significant new chapter in union/management relations and would mark a major defeat for IG Metall.

Driving the news: Talks with the works council are tense, as worker representatives demand a comprehensive package deal on savings, production, and wages.

• Separate negotiations with IG Metall on wage increases are also ongoing, with the next talks scheduled for October 30.

What’s next: VW plans to present a new strategy by year-end, focusing on AI, product strategy, and workforce qualification. Management stresses the need for cost reductions to stay competitive.

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See links here and here for news on problems elsewhere