The potentially decisive round of negotiations in the collective bargaining dispute at Volkswagen has begun.
The potentially decisive round of negotiations in the collective bargaining dispute at Volkswagen has begun. In Hanover, representatives of the company and IG Metall met for their fifth consultation. In a two-day marathon negotiation they want to try to reach an agreement before Christmas. Completion is not expected until Tuesday at the earliest.
A failure of the talks cannot be ruled out either. Because the positions are still far apart. Both sides spoke of difficult and probably lengthy talks that could last late into the night and then continue the next day. The approximately 70 participants in the negotiations – around 20 from Volkswagen and 50 from IG Metall – have booked into the hotel until at least Tuesday. Negotiations sometimes take place in large groups, sometimes in small working groups.
In the evening, brand boss Thomas Schäfer and corporate human resources director Gunnar Kilian also came to the negotiation location for the first time, as participants reported. So far, neither of them had taken part in the collective bargaining negotiations that have been ongoing since September.
Agreement before Christmas as a goal
At the start, both sides confirmed their desire to come to an agreement. “We can’t let any more time pass,” said VW negotiator Arne Meiswinkel. “The goal now is to find a solution together.” And it’s possible before Christmas, as works council leader Daniela Cavallo explained: “We don’t want to go on Christmas vacation with this uncertainty, with the fear of whether there will be redundancies here for operational reasons or whether there will be site closures.”
After the fourth round of negotiations a week ago, both sides reported constructive talks for the first time. So far, however, neither of them has spoken of a real rapprochement. In this matter, both sides are still “very, very, very far apart,” as IG Metall negotiator Thorsten Gröger explained.
VW wants to cut wages
Volkswagen is demanding a wage cut of ten percent due to the group’s difficult situation. Plant closures and redundancies for operational reasons are still on the cards. IG Metall, on the other hand, demands the preservation of all locations and an employment guarantee for the approximately 130,000 employees. She rejects permanent cuts in monthly wages. These are the “red lines” that should not be crossed, said Gröger. VW has to move here, otherwise there will be no compromise.
His VW counterpart Meiswinkel, on the other hand, once again referred to the company’s critical situation. “There is an acute need for action,” he emphasized. Now it’s about securing the future of the company. “To do this, we need to find further financial potential that will lead to long-term cost reductions.” Neither side gave any details about where compromise lines might lie.
IG Metall proposal rejected
An offer from IG Metall for savings without factory closures and Job cuts VW had previously rejected this as insufficient. IG Metall had offered to put a possible wage increase into a future fund. She promised the group a cost reduction of 1.5 billion euros. In return, VW should refrain from plant closures and redundancies for operational reasons.
According to Gröger, IG Metall has already taken a big step towards VW. He now expects the same from the company, which has so far stuck to its maximum demands. “In this phase of the negotiations, we clearly expect the company to be willing to engage in this constructive negotiation process.”
This time no warning strikes
Unlike the previous collective bargaining a week ago, this time there are no work stoppages at VW. IG Metall has already hit the car company with nationwide warning strikes twice since the beginning of December, most recently in parallel a week ago. According to the union, around 100,000 employees at nine locations took part both times. For the fifth collective bargaining that has now started, there was only a small rally with around 100 participants in front of the hotel.
According to IG Metall, it is impossible to estimate how long the talks will last. If there is no rapprochement again at the end of the marathon negotiations, the union is already threatening to expand the industrial action. “If the company doesn’t take this path with us now,” said Gröger, “then IG Metall’s escalation planning will be in place.” There is a risk of a massive expansion of warning strikes in 2025.
The VW share ultimately fell 2.02 percent to 86.24 euros in XETRA trading.
WOLFSBURG / HANNOVER (dpa-AFX)
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