VW, unions maintain ‘constructive’ talks, however no answer in sight

By Victoria Waldersee and Christina Amann

WOLFSBURG, Germany (Reuters) -Volkswagen and its unions had been removed from discovering frequent floor on tackling a disaster at its German vegetation however held talks on Monday that either side described as constructive, as report numbers of the carmaker’s staff went on strike throughout the nation.

“After right this moment’s spherical it’s clear we’re nonetheless removed from an answer,” Volkswagen (ETR:VOWG_p)’s chief negotiator Arne Meiswinkel mentioned after over seven hours of talks.

However labour consultant Thorsten Groeger mentioned it was the primary time talks had taken place in a “constructive local weather” and that they had been able to return to the negotiating desk on Dec. 16.

Earlier within the day, Groeger mentioned that except Monday’s talks took a conciliatory tone, unions noticed no additional room for negotiation this 12 months and would escalate strikes to an unprecedented degree in 2025.

Nonetheless, the unions remained steadfast in saying they’d refuse to simply accept plant closures, whereas the carmaker mentioned these couldn’t be dominated out, indicating the 2 events stay far aside.

VW workers downed instruments at 9 German websites that are below menace on Monday, whereas hundreds of staff marched waving flags and blowing whistles to a sq. in Wolfsburg, the place the carmaker has its headquarters, to take heed to union leaders.

The most recent negotiations, which initially kicked off in September, come as Europe’s largest carmaker seeks methods to radically lower prices in Germany to higher compete with cheaper Asian rivals which have entered its dwelling market.

The VW disaster has hit at a time of uncertainty and political upheaval in Europe’s largest economic system, in addition to wider turmoil among the many area’s automakers. German Chancellor Olaf Scholz, who’s trailing in polls forward of a snap election, warned VW towards manufacturing unit closures over the weekend.

Some 68,000 staff went on strike for 4 hours in Wolfsburg from the early and center shifts alone, with the late and evening shifts nonetheless to comply with, the IG Metall union mentioned.

The strikes are already extra widespread than the final spherical of main industrial motion at VW in 2018, when greater than 50,000 staff went on so-called warning strikes over pay at six websites.

IG Metall mentioned there have by no means been any actual walkouts lasting 24 hours or extra past so-called “warning strikes”, that are flagged prematurely and of restricted period.

Staff, who’ve dismissed any cuts to wages or plant closures, can crank up the strain on VW by ultimately staging 24-hour strikes and even open-ended ones.

Within the Nineteen Seventies, a last-minute settlement over pay disputes was reached the evening earlier than strikes had been attributable to start.

COST-CUTTING

Volkswagen insists that capability and wage cuts are wanted as a result of demand for automobiles in Europe has fallen whereas prices in Germany make it inconceivable to compete with new rivals.

“We proceed to wish to cut back prices, scale back overcapacity,” Meiswinkel mentioned forward of the talks, which had been happening on the Volkswagen Area the place the VfL Wolfsburg Bundesliga group performs its soccer.

1000’s gathered, blowing whistles, chanting, booing administration and holding indicators comparable to from particular person firm sections saying “ENOUGH NOW! B2 IS READY FOR THE FIGHT!”

CEO Oliver Blume final week defended Volkswagen Group’s selections as obligatory in a fast-changing surroundings, saying administration couldn’t function “in a fantasy world”.

Groeger urged VW to maneuver in the direction of the union’s place, warning on Monday morning that the negotiations had destroyed belief within the firm amongst staff.

“The model VW is below menace of turning into broken by the behaviour of the board and the share worth has been thrown to the underside of the basement. That’s the board’s accountability,” he mentioned.

Volkswagen’s inventory is among the many worst performers amongst European carmakers, having fallen by practically 25% this 12 months.

Whereas the total influence of the strikes was not instantly clear, the union has mentioned a number of hundred automobiles weren’t constructed on the Wolfsburg plant alone on account of the primary spherical.

Automakers face rising competitors from China, the place EV maker BYD (SZ:002594) just lately mentioned that between August and October it employed near 200,000 new workers in automotive and part manufacturing.

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