Representatives from German carmaker Volkswagen are to meet trade union officials in the northern city of Hanover on Monday for negotiations aiming to resolve a collective bargaining dispute before Christmas.
The two-day talks, due to begin at 11 am (1000 GMT), come with management at Europe’s largest carmaker demanding 10% across-the-board pay cuts for VW’s German workforce, and threatening to close factories in Germany and slash tens of thousands of jobs.
VW executives say that high labour costs in Germany are contributing to disappointing financial results, exacerbated by stiff competition in China and struggles with shifting to electric vehicles.
IG Metall, the trade union representing most Volkswagen workers, has flatly rejected those demands and vowed to wage a bitter fight against the cuts unless management agrees to compromise.
In an attempt to ratchet up the pressure on executives, employees have already held two rounds of strikes in December, with the threat of further action to come.
The latest talks – the fifth round of negotiations in total – are to be held in a hotel in Hanover, instead of at the company’s headquarters in Wolfsburg.
With the two sides still far apart, discussions are expected to continue until late on Tuesday.