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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. | |
Restructuring | Restructuring |
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. |
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