VW union agrees further pay talks

However, while the IG Metall union has agreed to further formal talks, no date has been set for the negotiations.

Under a significant restructuring drive, VW wants to extend the working week without raising wages at six plants in western Germany.

VW is hoping to make significant cuts to its production costs as it faces increasing competition in the industry.

Moratorium

It has previously warned that some 20,000 jobs could be at risk unless productivity is increased at the sites. VW wants to increase working hours at the six factories to 35 a week from the current 28.8 hours.

But while IG Metall said it had agreed to more negotiations, it added it had "rejected outright" plans to reintroduce the longer week without any wage increase.

VW's scope for action is limited, however, by a seven-year moratorium on compulsory redundancies lasting until the end of 2011.

During that time, VW can only reduce its workforce through early retirement or by voluntary redundancy.

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