Protracted talks between German giant Volkswagen and trade union negotiators aimed at resolving a bitter labor dispute over planned cuts at the carmaker resumed on Tuesday after a brief overnight break.
Leaders had expressed hope that the two-day talks between VW management and IG Metall, the trade union that represents around 130,000 VW factory workers in Germany, could deliver a deal too soon. -coming Christmas days.
Negotiations on Monday lasted for 13 hours and were only stopped after midnight, but the two sides still appear far apart.
VW management wants 10% across-the-board pay cuts for all German workers, and has threatened plant closures and mass layoffs as well.
The union, meanwhile, has rejected permanent wage cuts and demanded guarantees of job security for all workers.
Workers have staged two one-day strikes at VW plants in Germany to mark the settlement of the dispute, and labor leaders have threatened bitter resistance if management refuses to agree. negotiate the austerity plans.
VW officials say high labor costs in Germany are contributing to disappointing financial results at Europe's biggest carmaker, exacerbated by strong competition from China and struggling to move to electric vehicles.
According to company officials, VW needs higher profit margins to keep the brand competitive and to finance necessary investments.
After the fourth round of negotiations held last week, both sides said for the first time that the talks had been constructive, although they did not indicate real progress.
