VW rejects union cost-cutting plans

FRANKFURT: Volkswagen on Friday rejected as unrealistic a union proposal to make cost cuts at the carmaker’s German operations without having to close factories, sparking anger from worker representatives as strikes loom.

The crisis-wracked auto titan has been locked in bitter talks with unions since announcing in September that it was mulling the unprecedented step of shuttering plants in Germany.The powerful IG Metall union has indicated industrial action could start from December 1 if Volkswagen does not withdraw the drastic plans.

VW has been hit hard by high manufacturing costs at home, a stuttering shift to electric vehicles and tough competition in key market China.Ahead of the latest round of talks last week, the union and VW’s works councils put forward a series of proposals they said would save 1.5 billion euros ($1.6 billion) in labour costs without the need for site closures.

These included proposals for management and staff to waive bonuses. The union also said it could drop a demand for pay rises in exchange for working shorter hours at some factories.