Both sides reported the stalemate, but said they are on a constructive path and have agreed on several points.
The talks, taking place in the northern city of Hanover, are expected to resume at 11am (1000 GMT) on Friday.
Disagreement on some central issues
“There is still disagreement on some central issues, on which the negotiation could still fail,” the union said. It added that a sticking point remains “internal procedures on the employer’s side”. However, the union did not elaborate.
Negotiations have been ongoing since Monday, with sources describing them as tough. The union called the talks its longest wage round ever at Volkswagen.
Around 70 VW management executives and union negotiators are holed up in a hotel in Hanover for the meeting. It’s held deliberately away from the sprawling VW headquarters in the city of Wolfsburg, about 80km to the east.
VW, Europe’s largest carmaker, is seeking deep cuts to labour costs in Germany. Plant closures and mass lay-offs are also on the table. Management has demanded 10% across-the-board wage cuts for the German workforce.
Fewer apprentices, reduction of contract payments
In addition, VW wants to take on fewer apprentices and reduce the payment of contract workers. It’s citing high costs and low use at its plants.
IG Metall, which represents about 130,000 VW factory workers, has so far offered to forego wage increases and allow reduced working hours. But it has refused to consider permanent pay cuts, and has demanded job security guarantees.
Before the latest round of negotiations, IG Metall threatened to significantly expand strike action at VW if no agreement was reached by Christmas.
The trade union has already called for widespread strikes twice in December. It says around 100,000 employees at nine locations took part in the strike action.
- dpa
