In Hanover, Germany, Volkswagen is talking with labor leaders about keeping jobs safe as they deal with possible plant closures and pay cuts. These talks have been happening since Monday, and they hope to reach an agreement before Christmas to stop big strikes planned for next year by the IG Metall union. Recently, about 100,000 workers protested in two major strikes, which is the largest in the company’s history. They are unhappy with management’s plans to cut salaries, reduce work, and possibly close German plants.
Both sides want to work things out, but they still have a lot to discuss. Some progress has been made, but it might not be enough to agree yet. The union strongly disagrees with the idea of closing plants, while Volkswagen says it might need to cut costs because they see less demand for cars in Europe.
One idea being discussed is to cut back on production rather than closing factories completely. There are rumors that Volkswagen might move some production of the popular Golf model to Mexico from its main factory in Wolfsburg. The company, which is the biggest car maker in Europe, is also facing competition from cheaper Chinese brands and slow sales of electric cars.
Bloomberg reported that Volkswagen and the labor unions might agree to restructure without closing any factories in Germany. Volkswagen is open to keeping plants running and promising job security until 2030, but this may come with workers giving up bonus payments.
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