By Dominic Chopping


Volkswagen and labor leaders will meet for further talks next week after they failed to agree on how to proceed with the sweeping cost cuts the automaker says are crucial to restore competitiveness.

A fresh round of talks are scheduled to begin Dec. 16 after over seven hours of talks ended without an agreement on Monday.

Both sides said the latest round of negotiations had been constructive, but further talks would be needed to find a way forward.

Volkswagen's lead negotiator, Arne Meiswinkel, said in a statement late Monday that progress had been made in Monday's discussions. "But we remain significantly apart on a solution."

The German auto giant has put forward plans to cut workers' pay by 10% and scrap bonuses while insisting that capacity must also be cut as it resizes to adapt to waning electric-vehicle demand, competition from Chinese rivals and high labor costs. But labor leaders are refusing to accept any factory closures, pay cuts or mass layoffs.

According to the head of Volkswagen's works council, Daniela Cavallo, the company also aims to shut at least three factories in Germany and lay off tens of thousands of staff.

Metal workers union IG Metall said 102,600 employees participated in walk-outs across the country throughout Monday, eclipsing the 98,650 workers that walked off the job in a first wave of strikes last week.

Volkswagen employs around 300,000 employees in the country, of which about 120,000 are covered by a collective bargaining agreement.

Union leaders had earlier threatened to escalate strikes in the new year if Monday's talks failed to progress.

In a statement following Monday's talks, IG Metall negotiator Thorsten Groeger said that despite a much more "constructive discussion climate," the parties' positions remain far apart. "What is crucial for IG Metall is that a solution must be found without site closures or redundancies."


Write to Dominic Chopping at dominic.chopping@wsj.com


(END) Dow Jones Newswires

12-10-24 0758ET