Volkswagen began labor negotiations with its union this Wednesday. The union is asking for a 4 percent wage increase and job security guarantees while Volkswagen is insisting on a two-year wage freeze and other cutbacks. Germany has long been known for being a ?high-wage? country, but Volkswagen is set on lowering labor costs. It has been implied that the company may move jobs out of the country if an agreement cannot be reached.
See "Volkswagen Begins Talks With Union", Mark Landler, The New York Times, September 15, 2004