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VW and unions strive for job deal VW and unions strive for job deal
(about 2 hours later)
Volkswagen, Europe's biggest carmaker, is meeting union officials for talks which experts say could prove vital to its future.Volkswagen, Europe's biggest carmaker, is meeting union officials for talks which experts say could prove vital to its future.
The company wants its German employees to accept a big increase in working hours without increasing their pay.The company wants its German employees to accept a big increase in working hours without increasing their pay.
Negotiations between the firm, workers and trade unions have proved difficult. Workers and the trade union IG Metall want guarantees that jobs will be safeguarded at Volkswagen's plants in western Germany. Negotiations between the firm, workers and trade unions have proved difficult.
Workers and the trade union IG Metall want guarantees that jobs will be safeguarded at Volkswagen's plants in western Germany.
RestructuringRestructuring
The talks come as Volkswagen wrestles with a serious problem.The talks come as Volkswagen wrestles with a serious problem.
Although Volkswagen's cars are proving popular and sales are very strong, its profit margins are being squeezed by high production costs, particularly in its west German heartlands.Although Volkswagen's cars are proving popular and sales are very strong, its profit margins are being squeezed by high production costs, particularly in its west German heartlands.
Earlier this year, Volkswagen chief executive Bernd Pischetsreider introduced a major cost-cutting drive which could ultimately lead to as many as 20,000 jobs being shed.Earlier this year, Volkswagen chief executive Bernd Pischetsreider introduced a major cost-cutting drive which could ultimately lead to as many as 20,000 jobs being shed.
So far, the company has said that more than 13,000 employees have taken voluntary redundancy or agreed to retire early.So far, the company has said that more than 13,000 employees have taken voluntary redundancy or agreed to retire early.
But the company also wants remaining employees to accept an increase in their working week from 29 to 35 hours, without a significant increase in their pay.But the company also wants remaining employees to accept an increase in their working week from 29 to 35 hours, without a significant increase in their pay.
Workers representatives have suggested that they could make concessions, but only if the company promises to build important new models at its German plants, and offers guarantees of job security.Workers representatives have suggested that they could make concessions, but only if the company promises to build important new models at its German plants, and offers guarantees of job security.
People within the company say Friday's talks in Hannover are unlikely to result in a formal agreement. But they are expected to pave the way for further negotiations which could lead to a deal before the end of the year.People within the company say Friday's talks in Hannover are unlikely to result in a formal agreement. But they are expected to pave the way for further negotiations which could lead to a deal before the end of the year.