Volkswagen is set to enter labor talks with Germany's largest industrial union, IG Metall, on September 15th. Volkswagen would like workers to forego wage rises and make other cost-cutting concessions in exchange for a promise not to cut jobs. However, IG Metall is sticking to its demand of a 4 percent annual increase. The chief financial officer of the company has said that if a compromise cannot be reached the company may have to cut up to 30,000 plus jobs.
See "Some Volkswagen Jobs May Be at Risk", The New York Times, September 8, 2004