Volkswagen rejects union proposal as strikes approach

Volkswagen said on Friday that a proposal presented by the IG Metall trade union and the company's works council would not saved the costs it claimed it would, and would not have proved a long-term solution, News.az reports citing Deutsche Welle.

"Although there may also be positive effects in the short term, the measures will not lead to any sustainable financial relief for the company in the coming years," VW said in a statement, adding that it would remain in contact with labor representatives.

The two sides are locked in difficult negotiations on pay, with VW calling for workers to accept pay cuts — arguing that they are overpaid by the sector's standards — and warning of the possibility of plant closures and layoffs.

The German car giant says its long-term survival could be at stake unless it takes steps to adapt its costs and production capacities to falling sales and demand in Europe in particular, and elsewhere.

News.Az