VW, unions in fact-finding talks as carmaker develops new strategy

Volkswagen unions and management are in the midst of talks unions say went from abysmal to controversial, as workers have accused the carmaker of failing to present a vision for the future despite assurances that a new strategy is underway.

In an interview published online to workers in Volkswagen's works council newspaper on Thursday, works council chief Daniela Cavallo said the talks, taking place weekly, were abysmal at the beginning and are now "serious, critical, and controversial".

"We are not yet in a mode that could be called negotiation. It is first and foremost about numbers, data, facts, and finding a common understanding of the issues," Daniela Cavallo said, according to a copy of the interview seen by Reuters.

Asked about the talks, a Volkswagen spokesperson said they were confidential and that the company would not anticipate their result. "Significant cost reductions are necessary in order to remain competitive," the spokesperson added in a written statement.

In a Q&A list of answers to questions from workers on the carmaker's current crisis posted by management on the staff intranet and seen by Reuters, the company said it was developing a strategy to be presented internally by the end of the year.

The strategy would incorporate factors that management viewed as critical to the company's success, from AI use to product strategy to qualification of the workforce.

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Paralysis?

Volkswagen management has held weekly meetings since early October with worker representatives from each of its German plants laying out the facts and figures to establish where cuts could be made and which models will be produced at which site.

Negotiations over wage increases happen separately, a union spokesperson said, with the next official negotiation round taking place on Oct. 30.

Still, unions say the three topics - savings, production plans and wages - must be discussed as a package, refusing to strike a compromise on one until a solution is found on all issues.

Juergen Mahnkopf, the deputy works council chief, said unions would paralyse the company if it made a one-sided decision to close plants against their will, threatening "massive resistance on all fronts and at all levels".

Tensions at the carmaking giant are high as the risk of factory closures, which would be a first for the company in Germany, set it on a collision course with worker representatives who make up half of its supervisory board and can sway decisions on company strategy.

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