Volkswagen AG is facing new challenges as discussions with its employees union in Germany have been put on hold after company and union negotiators failed to reach agreement on the implementation of the company’s proposed turnaround plan.
The talks are tentatively scheduled to resume later this month but the failure to reach agreement with the unions at its major plants in Germany could have dire consequences for the company as its struggles to overcome the huge and still rising financial burden created by the two-year-old diesel emission scandal.
German unions generally try to avoid confrontations but the unions at VW have been frustrated with the company’s management ever since the scandal first came into public view in the autumn of 2015. Union leaders from IG Metal the principal German metalworkers union have said the responsibility for the diesel scandal clearly lies with the company’s management. (more…)