Union Leaders Clash with Volkswagen Over Potential Job Cuts and Plant Closures in Germany

Union leaders have issued a stern warning to Volkswagen about potential job cuts and factory closures in Germany as pay talks commence. The negotiations with IG Metall could decide the future of 130,000 workers. The tension is heightened by Volkswagen's need to reduce costs in the face of high energy and labor expenses.

Union leaders have issued a stern warning to Volkswagen, cautioning against making an 'historic mistake' as pay negotiations begin. These talks are critical and could determine the extent of layoffs and plant closures in Germany, igniting tensions with the IG Metall union.

The negotiations with IG Metall involve new labor deals for Volkswagen's 130,000 German workers. Worker representatives have vowed a bitter fight against job cuts, threatening strikes from December and demanding a 7% pay increase. IG Metall's chief negotiator, Thorsten Groeger, criticized Volkswagen's management during a speech in Hanover.

The discussions take place amid wider struggles for Germany's industry, facing high costs and fierce competition. Economy Minister Robert Habeck aims to support Volkswagen through cost-cutting without resorting to closures, but limits exist. Union leaders stress collaboration over confrontation, warning that a failure to do so might be costly for Volkswagen.

(With inputs from agencies.)