As Volkswagen and the union representing its workers, IG Metall, prepare for contract talks scheduled to begin September 15, the company has made it clear that there is ?no room for salary increases.? Instead, the automaker is seeking to cut paid breaks and increase flexible working time in an effort to reduce labor costs by 30 percent by 2011. The union plans to stick to its demand for a 4 percent raise in each year of the next two year contract.
See "VW seeks pay freeze at plants in Germany", International Herald Tribune, August 23, 2004