Volkswagen workers head towards strikes from December

Volkswagen workers in Germany took a step closer to strike action on Thursday, after unions and management met for the third round of talks over the ailing carmaker's drastic cost-cutting plans.

Despite progress in the negotiations, representatives from the IG Metall union indicated they would move to start "warning strikes" from December 1.

Volkswagen, whose brands range from its core VW models to Porsche and Skoda, is battling challenges including high costs at home, slowing sales in key market China and a problematic transition to electric vehicles.

Thursday's talks were the third round since September's bombshell announcement that VW was mulling unprecedented factory closures in Germany.

IG Metall went into the meeting with proposals it said would save 1.5 billion euros ($1.6 billion) in labour costs without the need for site closures.

Union negotiator Thorsten Groeger told reporters after the talks that the management side had agreed to evaluate the plans and continue talks "on this basis".

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The two sides would meet again on December 9 to discuss the proposals, Groeger said.

At the same time, Groeger said he would "recommend to the collective bargaining committee that we call for warning strikes at Volkswagen's locations when the no-strike obligation expires, that is to say from December 1".

"This is necessary in the ongoing negotiation process because it has also become clear today that... the difference between the positions is still huge," he said.

The possibility that VW factories in Germany would be closed was "not off the table", he added.

'Positive signal'

Volkswagen's lead negotiator Arne Meiswinkel said in a statement it was a "positive signal that the employee representatives have shown openness to reducing labour costs and capacity reductions".

Making savings was "crucial in order to ensure competitiveness in an extremely challenging phase for the German automotive industry", Meiswinkel said.

Ahead of the talks, about 6,000 workers from across Germany joined colourful demonstration outside VW's historic headquarters in Wolfsburg, waving banners that read "Fight for our future" and "Solidarity wins".

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One protesting worker, Kubilay Otzgemir, told AFP that "we are all angry" and that he did not have a "plan B" if he loses his job.

"We hope it doesn't come to that," said the 41-year-old, who has been working at VW's plant in Salzgitter for 13 years.

Daniela Cavallo, head of VW's works council, said the union's plan showed there was room for compromise.

"Now it is the turn of the company side to respond to this and show that they are also prepared to move towards us in the upcoming talks," Cavallo said after the meeting with management.

Source: AFP