IG Metall threatens historic labour battle if VW insists on plant closures

BERLIN/WOLFSBURG (Reuters) – Workers are prepared to make concessions worth 1.5 billion euros ($1.58 billion) in ongoing negotiations with Volkswagen (ETR:VOWG_p) over cost cuts, warning of a far-reaching conflict if the carmaker insists on plant closures.

Thorsten Groeger, who leads negotiations for the IG Metall union, said otherwise Volkswagen workers would enter a conflict with the company “the likes of which this republic has not seen for decades”.

Strikes at the majority of the carmaker’s German sites, which are at the heart of the conflict, are possible from Dec. 1.

The comments come a day ahead of a third round of crunch talks between workers and management over pay cuts and factory shutdowns in what marks the fiercest dispute in years at Europe’s largest carmaker.

Volkswagen, under massive pressure by high costs in Germany and cheaper Asian rivals on the continent, has said deep cuts at its brand were needed to make it fit for the future, asking for a 10% pay cut and not ruling out plant closures.

The concessions by IG Metall and Volkswagen’s works council, led by Daniela Cavallo, are part of a package of proposal laid out on Wednesday, hoping for a less drastic outcome of talks with forced layoffs.

“The problems that we have are not created by the workforce and will not be solved by only looking at labour costs. Yet we are ready to make a contribution with what we have laid out here today,” Groeger said.

($1 = 0.9470 euros)