Volkswagen union invokes talks clause over restructuring dispute

IG Metall moved to invoke a clause requiring talks with Volkswagen ($VOW3) over concerns that a newer turnaround plan could undermine the company’s existing labor agreement. The union wants management to uphold job and investment commitments made in the earlier settlement. Volkswagen said it welcomes discussions.

The dispute centers on a restructuring plan involving much larger workforce reductions and possible future plant closures. Those proposals should not be read as newly completed layoffs. The union is restricted from striking until year-end under current agreements. The latest development is an escalation of formal negotiations over how Volkswagen will implement cost reductions while meeting its prior commitments to employees.

Sources:

• Reuters — labor dispute, syndicated by Investing.com