Volkswagen terminates wage deals raising strike risks
Volkswagen terminated wage agreements with the IG Metall union. The move escalates labor tensions and raises the possibility of strikes early next year. Management defends the restructuring to lower costs.
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VOLKSWAGEN AG terminated wage agreements for 100,000 workers in Germany on Wednesday, raising strike risks as IG Metall vowed to escalate a bitter dispute. The move follows CEO Oliver Blume's radical restructuring plan aimed at cutting costs across domestic plants. Intensifying competition from Chinese automakers has driven European legacy carmakers to threaten plant closures.
