At the end of April, VW is expected to begin talks with IG Metall, a labor union representing its workers. The union is demanding a 4.5% to 5% wage increase for its members despite the fact that inflation is near zero. These wage increases could be a challenge for VW as it is may have to pay billions in fines following the emissions scandal. Now VW has realized that its goal to increase productivity may be unrealistic and the company will potentially need to consider job cuts, particularly among the company's temporary staff.
See "VW’s Two-Front Fight: U.S Regulators, German Unions", Christoph Rauwald, Chicago Tribune, February 5, 2016