HANOVER, Germany – Volkswagen management and labor representatives negotiated late into the night on Monday in a last-ditch round of talks on cost cuts before Christmas, with unions saying it was far from clear whether compromise would be reached.
The talks, which began early Monday morning, lasted around 13 hours and finished in the early hours of Tuesday without a deal, but will resume in the mid-morning, according to a spokesperson for IG Metall union. The sides were far apart on key points, with unions refusing to accept plant closures and the carmaker insisting they cannot be ruled out.
Unions have threatened unprecedented strike action in the new year if a compromise is not reached in the talks, which are expected to last several days. “Workers don’t want to go into Christmas in fear,” union leader said outside the hotel before the talks began.
Volkswagen, Europe’s largest carmaker, is struggling with high costs and the arrival of cheaper Chinese competitors, which is taking the battle for market share to their home turf. Unions blame poor decisions by management for the company’s malaise, including the diesel emissions scandal and not investing in affordable EV technology.
The company’s share price has fallen by over a third in the past 12 months, reflecting its difficulties in tackling rising rivals and a slowdown in EV demand. More than 100,000 staff at nine plants across Germany downed tools last week in the largest strikes at the carmaker, protesting against management’s stance on wages and capacity downsizing.
