Volkswagen Faces Union Uproar: Strikes Loom as Factory Closures Threaten

Volkswagen rejected union demands after bitter negotiations ended without agreement. Workers threatened strikes over job cuts and plant closures. The powerful IG Metall union is at odds with Volkswagen management as they negotiate new labor deals for 130,000 workers. Site closures and layoffs remain contentious issues.

Volkswagen has rejected union demands following the first round of contentious talks, which ended without an agreement on Wednesday. Workers at Europe's largest automaker have threatened strikes in response to potential layoffs and plant closures.

The specter of factory closures has set Volkswagen on a collision course with the powerful IG Metall union. Tensions are particularly high as this would mark the first closures in Germany for the company.

The VW brand's personnel chief, Arne Meiswinkel, stated the division must reduce costs to remain competitive, necessitating contributions from employees. IG Metall is insisting on a 7% pay rise and has warned of potential strikes starting in December. The situation remains highly charged with no date set for the next round of talks.

(With inputs from agencies.)