Volkswagen Standoff: Unions vs. Management in Pre-Christmas Negotiations

Volkswagen's works council opposes plant closures and redundancies as pre-Christmas negotiations begin. Facing competition from cheaper Chinese rivals, both sides must reach a deal. Unions threaten strikes if no agreement is made soon. VW shares dropped, reflecting challenges in a slowing electric vehicle market.

Volkswagen's works council head has made it clear that cost-cutting measures must not lead to plant closures or redundancies. This assertion was made as the latest round of negotiations began, with Europe's leading car manufacturer under pressure from high costs and low-cost Chinese competitors threatening their market share.

The negotiations, which are the fifth since late September, are expected to continue for several days unless irreconcilable differences lead to an impasse. Daniela Cavallo, the head of VW's works council, emphasized the need for a balanced compromise that benefits both the company and the workers, to avoid Christmas-time anxiety among employees.

The severity of the discussions is underscored by the unions' threat of unprecedented strike actions if a satisfactory agreement is not reached by 2024. With Volkswagen's market challenges reflected in a significant drop in share prices, the tension in these talks is palpable, as both the carmaker and unions stake out their positions.

(With inputs from agencies.)