[an error occurred while processing this directive]
BBC News
watch One-Minute World News
Last Updated: Friday, 29 September 2006, 19:11 GMT 20:11 UK
VW workers agree to work longer
Staff at VW factory in Wolfsburg
Volkswagen wants staff to work longer to cut production costs
Volkswagen has struck a deal with unions to extend the working week of staff at six German plants without any increase in pay.

In return for raising their hours by four hours a week to 33 hours, the 100,000 workers have been guaranteed job security until 2011.

The carmaker promised to build the next generation of its flagship Golf model at its main factory in Wolfsburg.

The company wants to cut costs for the production of its vehicles.

Cars such as the Golf are selling strongly but are bringing in little profit.

VW had been seeking a 35-hour week without extra pay.

"These binding and concrete product promises secure the work force through 2011 and beyond in all six west German production locations," said Hartmut Meine, negotiator for the IG Metall union.

VW also promised unions that the Wolfsburg site would be given another high-volume model to produce, and would be used to its full capacity of 460,000 cars per year.

"With an agreement on the main points, we have taken a big step forward in the restructuring of Volkswagen," said the company's human resources director Horst Neumann.

"The negotiations were very tough, but they were characterised by a common will to raise Volkswagen's competitiveness.

"With a return to normal working times, we have achieved that."

No deal yet between VW and unions
22 Sep 06 |  Business
VW and unions postpone pay talks
19 Sep 06 |  Business
VW union agrees further pay talks
11 Sep 06 |  Business
Volkswagen shift aim irks unions
12 Jun 06 |  Business
VW strike in Brazil over sackings
30 Aug 06 |  Business
VW Brazil loan stopped over row
29 Aug 06 |  Business

The BBC is not responsible for the content of external internet sites

Has China's housing bubble burst?
How the world's oldest clove tree defied an empire
Why Royal Ballet principal Sergei Polunin quit


Americas Africa Europe Middle East South Asia Asia Pacific