IG Metall union announced on Friday that there will be no job losses or factory shutdowns at Volkswagen following days of negotiations between the carmaker and labor representatives concerning cost-cutting strategies.
"We had three priorities in the negotiations: reducing excess capacity at the German sites, reducing labor costs and reducing development costs to a competitive level," the union stated on Friday. "We have achieved viable solutions on all three issues."
The development followed marathon negotiations spurred by two nationwide strikes at Volkswagen factories. The strikes were part of a push for better conditions amidst ongoing wage talks. The negotiations were further intensified by Volkswagen's initial proposal to shut down three plants and implement a 10% pay cut.
