Union IG Metall pressures Volkswagen, threatening to escalate if their demands aren't met.
Union IG Metall pressures Volkswagen, threatening to escalate if their demands aren't met.
For two days, the management and the union at the troubled automaker Volkswagen will attempt to reach a settlement in their salary disagreement. Both parties are eager for a rapid resolution, yet they remain significantly disconnected. Should a settlement be reached, will the union's "escalation strategy" be put into motion?
During the critical wage negotiations at Volkswagen, the IG Metall union is insisting on concessions from the corporation. "Despite the positive dialogue last time, it's far from satisfactory," stated works council chairwoman Daniela Cavallo during the opening of the fifth round of talks in Hannover. "Therefore, it's now essential for the company to join us."
IG Metall representative Thorsten Groeger aims for a resolution before Christmas. However, they are still "incredibly, incredibly, incredibly" distant in their stances. Groeger reinforced: "We now expect the company to also participate in this constructive negotiation process."
Union hints at intensifying warning strikes
Otherwise, the union is hinting at intensifying warning strikes. "If the company does not join us on this path now," said Groeger, "then the IG Metall's escalation strategy is imminent."
Unlike the previous wage negotiation round a week ago, there are no work stoppages at VW this time. The IG Metall had already conducted two company-wide warning strikes against the automaker since early December, most recently concurrently a week ago. According to the union, around 100,000 employees at nine locations participated both times.
Volkswagen is advocating for a 10% salary decrease due to the company's poor financial situation. Plant closures and layoffs remain as options. The IG Metall, on the other hand, is demanding the preservation of all locations and a job assurance for the company's approximately 130,000 employees.
The company also seeks to put an end to the dispute. "We can't afford to lose any more time," said VW representative Arne Meiswinkel at the start of the talks in Hannover. "There is an urgent need for action." However, the positions remain significantly apart, Meiswinkel acknowledged. "Now our goal is to find a solution together. This is our shared responsibility." Only then can the company's future be secured. "To achieve this, we must identify additional financial resources that will lead to lasting cost reduction."
At midday, representatives from the company and the IG Metall convened in Hannover for their fifth round of wage negotiations. Over two exhausting days, they will attempt to achieve a settlement before Christmas. According to the IG Metall, it's difficult to predict how long the negotiations will last.
The Commission has expressed its expectation for Volkswagen and the IG Metall union to find a resolution in their salary dispute, as any further delay could impact the company's future.
If the company and the union fails to reach an agreement, the IG Metall's escalation strategy, which includes intensifying warning strikes, may be put into action.