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Volkswagen and IG Metall Struggle to Resolve Historic Labor Dispute

Talks over plant closures, pay cuts, and job security continue after more than 64 hours of negotiations with no resolution in sight.

  • Volkswagen and IG Metall have been negotiating since Monday to address disputes over potential plant closures, a proposed 10% pay cut, and job security for 130,000 workers.
  • The discussions, described as the longest-ever labor negotiations for Volkswagen, have yet to produce a final agreement, with both sides remaining divided on key issues.
  • IG Metall has labeled plant closures and job cuts as 'red lines,' while Volkswagen cites financial pressures and declining demand, particularly for electric vehicles in Europe and China, as drivers for cost-cutting measures.
  • A tentative proposal suggests keeping German plants open and reinstating job security agreements until 2030 if workers forgo bonus payments, though no deal has been finalized.
  • Failure to reach an agreement could lead to massive strikes starting in January, with both sides aiming for a resolution before Christmas to avoid further unrest.
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