Lengthy talks between German giant Volkswagen and trade union negotiators aimed at resolving a bitter labour dispute over planned cutbacks at the carmarker resumed on Tuesday after a brief overnight break.
Leaders had expressed hope that the two-day talks between VW management and IG Metall, the trade union that represents about 130,000 of VW’s factory workers in Germany, might yield a deal before the upcoming Christmas holiday.
Negotiations on Monday lasted for 13 hours and were only halted after midnight, but the two sides continue to appear far apart.
VW management is demanding 10% across-the-board pay cuts for the entire German workforce, and has threatened possible plant closures and mass lay-offs as well.
The union, meanwhile, has rejected permanent wage cuts and has demanded job security guarantees for all workers.
Workers have twice staged one-day strikes at VW’s plants in Germany to signal their resolve in the dispute, while labour leaders have threatened to mount bitter resistance if management refuses to compromise on the austerity plans.
VW executives say that high labour costs in Germany are contributing to disappointing financial results at Europe’s largest carmaker, exacerbated by stiff competition from China and struggles with shifting to electric vehicles.
According to company executives, higher profit margins at VW are needed to keep the brand competitive and fund necessary investments.
Following the fourth round of negotiations held last week, both sides said for the first time that talks had been constructive, albeit without signalling real progress.
