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Follow | Volkswagen opens talks with Germany unions Executives say they need to cut costs to remain competitive

Text: Understand the original Chedi Wei Yanling

On September 25, according to foreign media reports, the Volkswagen Group labor union and its executives have started salary negotiations, and the results of the negotiations will affect Volkswagen's efforts to lay off employees and close factories in Germany.

Follow | Volkswagen opens talks with Germany unions Executives say they need to cut costs to remain competitive

Since the beginning of this year, Volkswagen has made frequent moves to close factories and lay off employees, and its internal relations have become increasingly tense. It has also clashed with the Germany Metalworkers' Federation (IG Metall), which has issued a statement saying it would boycott any such moves.

Follow | Volkswagen opens talks with Germany unions Executives say they need to cut costs to remain competitive

On September 25, the Germany Metalworkers' Federation (IG Metall) held a protest

Earlier this month, Volkswagen said it had terminated a more than 30-year-old job guarantee agreement that was supposed to protect employee jobs until 2029 but would now end earlier by the middle of next year.

Follow | Volkswagen opens talks with Germany unions Executives say they need to cut costs to remain competitive

At the start of the Hannover talks, Volkswagen's head of human resources said the department had to cut costs to remain competitive.

"Germany is lagging behind in the competition. Our core brand, the general public, has been particularly affected. International competition threatens to overtake us," says Arne Meiswinkel. "We have to work together to restructure our company. The situation is dire. ”

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