HANOVER, SEPT 26 – German automotive giant Volkswagen (VW) rejected union demands for wage increases, instead threatening to cut costs during the first collective agreement negotiations with labor leaders yesterday, the German News Agency (dpa) reported.
Labor leaders said that VW management also declined to provide further details on possible mass layoffs and factory closures that VW management has threatened as part of austerity efforts in recent weeks.
“Instead of burdening costs, we need cost relief,” said VW’s Head of Human Resources, Arne Meiswinkel who acted as chief consultant for management. “This also requires contributions from employees.”
The IG Metall trade union, which represents the majority of VW’s workforce, said the company’s demands were a threat of pay cuts for workers at the company.
IG Metall is demanding a 7 percent wage increase at VW and the entire German automotive industry.
Yesterday’s discussion lasted about three hours. Further meetings have not yet been scheduled, but the chief negotiator for the union said he hoped the next round would be held before the end of November. – Named
