Volkswagen Rejects Union's Cost-Saving Proposal, Strikes Expected

As labor negotiations stall, VW dismisses IG Metall's plan, citing insufficient long-term savings, while unions prepare for potential walkouts starting December.

Volkswagen has rejected a cost-saving proposal from IG Metall and the company's works council, claiming it fails to deliver sustainable financial relief despite potential short-term benefits.
The union's plan included a temporary pay freeze, the creation of a fund to support affected workers, and guarantees against layoffs and plant closures.
Volkswagen insists on significant cost reductions, including a 10% wage cut, citing declining car sales, overcapacity, and competition from low-cost manufacturers like China.
With no agreement reached, IG Metall has warned of possible strikes beginning December 1, as the peace obligation ends this weekend.
Further negotiations are scheduled for December 9, but both sides remain far apart, with VW yet to present a counterproposal.