Vw And Workers In Germany Inch Towards Cost-cutting Deal Sources

Volkswagen is close to reaching an agreement with labor leaders after its longest-ever negotiations on pay and job security, sources revealed on Friday. However, the final outcome remains uncertain as Europe's largest automaker seeks to implement cuts and avoid widespread strikes.

The company has been in discussions with labor representatives since September, arguing that these measures are necessary for it to stay competitive against lower-cost Chinese competitors, weaker demand in Europe, and slower-than-expected progress in the shift to electric vehicles.

In the past month, around 100,000 workers have held two major strikes - the largest in Volkswagens 87-year history - protesting plans to cut wages, reduce production capacity, and potentially close German plants for the first time.

One source told Reuters that a draft proposal has been developed, but the deal could still fall apart if either Volkswagens board or the workers' commission rejects it.

According to the Handelsblatt newspaper, the tentative agreement would help the company meet its goal of saving billions of euros. The report also suggested that Volkswagen plans to seek a buyer for its Osnabrck plant, while the Dresden site could either be repurposed or shut down entirely.