Germany's largest car manufacturer Volkswagen confirms that the company is demanding a 10 percent wage reduction in negotiations with the union. The crisis-stricken corporation estimates that at least three factories in Germany must be closed and layoffs are to be expected.
On Wednesday evening, Volkswagen's management confirmed that "painful" measures must be taken, since the operating profit has plummeted for the third quarter compared to the same period last year.
Volkswagen's negotiator Arne Meiswinkel said in a statement that wage increases are out of the question, "rather, the company sees a 10 percent wage reduction as a level that would enable Volkswagen to invest in the future to remain competitive – and thus secure jobs".
Volkswagen also wants to cut back on certain benefits for factory workers, said Meiswinkel after seven hours of negotiations at the headquarters in Wolfsburg.
The move sparked outrage within the powerful metalworkers' union IG Metall. Chief negotiator Thorsten Gröger succinctly summarized the proposal as an unacceptable "wish list". Gröger added that the union will not break off negotiations since Volkswagen's management has expressed a willingness to try to avoid layoffs and factory closures.
