Volkswagen and IG Metall: Breaking the Deadlock

Volkswagen and IG Metall union have reached a rapprochement during intense negotiations over wages and job security, amid Europe's largest economy's political and economic challenges. Strikes involving 100,000 workers highlight the automotive crisis and pushback against management plans threatening pay cuts and plant shutdowns.

Volkswagen and IG Metall, one of the largest unions, have found common ground after prolonged pay and job security negotiations, as reported by sources familiar with the talks on Friday. This development comes as Volkswagen attempts to implement cost-cutting strategies.

The ongoing talks reached their fifth round this week, as the automotive giant engages in critical discussions to secure its competitive edge globally. This follows widespread worker action, with unprecedented strikes aiming to protect wages and jobs against reduction plans proposed by management.

About 100,000 workers have already participated in strikes in recent weeks, marking a historic moment for Volkswagen's labor relations. The negotiations occur against a backdrop of political and economic instability in Germany and turmoil in the European automotive sector.

(With inputs from agencies.)