Volkswagen's Wage War: Strikes Loom Amid Factory Closure Threats

Volkswagen's union, IG Metall, plans strikes from Dec. 1 after failed wage talks. The company demands a 10% wage cut, amid plant closure threats. Unions suggested forgoing bonuses and reduced working hours to save costs. Talks continue Dec. 9, with wider implications for Germany's industrial status.

Volkswagen faces potential strikes beginning on December 1, as unions and management remain at an impasse over wages and factory closures. The IG Metall union has called for a significant step in negotiations, but both parties have not reached an agreement.

Volkswagen insists on a 10% wage reduction, citing the need to cut costs and maintain market share against low-cost competitors from China. The automaker has even threatened factory closures, sparking fears about Germany's industrial strength amid an upcoming election.

Thousands of workers, backed by the IG Metall union, have rallied outside Volkswagen's headquarters in Wolfsburg. The union proposes a temporary reduction in working hours and a two-year bonus freeze to save 1.5 billion euros. Meanwhile, negotiations are set to resume on December 9.

(With inputs from agencies.)