Volkswagen's Labor Dispute: Strikes Loom Over German Plants

Volkswagen and union leaders remain deadlocked over job security at German plants despite extensive talks. With the threat of massive strikes looming, discussions aim to prevent industrial action amid political uncertainty. Progress on wage issues is noted, but plant futures remain uncertain as capacity cuts are considered.

Volkswagen and union leaders are in a standoff over key issues such as job security and the future of the carmaker's German plants. After more than 50 hours of intense negotiations, the parties aim to prevent strikes before Christmas, despite little progress on some key disputes.

IG Metall, Germany's predominant union, reports some movement on wage discussions, but the fate of VW's Osnabrueck and Dresden plants remains unclear. The union warns that an extended pause or breakdown of talks is possible as industrial action threatens Europe's largest economy amid a backdrop of political instability.

Volkswagen faces structural shifts, considering capacity cuts rather than complete shutdowns, while potentially moving Golf production to Mexico. The automaker grapples with European demand changes and competition from cheaper Chinese competitors. Bloomberg suggests an agreement could be near, maintaining German plants in exchange for changes in worker bonuses.

(With inputs from agencies.)