VW, unions hold 'constructive' talks, but no solution in sight

By Victoria Waldersee and Christina Amann

WOLFSBURG, Germany (Reuters) -Volkswagen and its unions were far from finding common ground on tackling a crisis at its German plants but held talks on Monday that both sides described as constructive, as record numbers of the carmaker's workers went on strike across the country.

"After today's round it is clear we are still far from a solution," Volkswagen's chief negotiator Arne Meiswinkel said after over seven hours of talks.

But labour representative Thorsten Groeger said it was the first time talks had taken place in a "constructive climate" and that they were ready to return to the negotiating table on Dec. 16.

Earlier in the day, Groeger said that unless Monday's talks took a conciliatory tone, unions saw no further room for negotiation this year and would escalate strikes to an unprecedented level in 2025.

Still, the unions remained steadfast in saying they would refuse to accept plant closures, while the carmaker said these could not be ruled out, indicating the two parties remain far apart.

VW staff downed tools at nine German sites which are under threat on Monday, while thousands of workers marched waving flags and blowing whistles to a square in Wolfsburg, where the carmaker has its headquarters, to listen to union leaders.

The latest negotiations, which initially kicked off in September, come as Europe's largest carmaker seeks ways to radically cut costs in Germany to better compete with cheaper Asian rivals that have entered its home market.

The VW crisis has hit at a time of uncertainty and political upheaval in Europe's largest economy, as well as wider turmoil among the region's automakers. German Chancellor Olaf Scholz, who is trailing in polls ahead of a snap election, warned VW against factory closures over the weekend.

Some 68,000 workers went on strike for four hours in Wolfsburg from the early and middle shifts alone, with the late and night shifts still to follow, the IG Metall union said.

The strikes are already more widespread than the last round of major industrial action at VW in 2018, when more than 50,000 workers went on so-called warning strikes over pay at six sites.

IG Metall said there have never been any real walkouts lasting 24 hours or more beyond so-called "warning strikes", which are flagged in advance and of limited duration.

Workers, who have dismissed any cuts to wages or plant closures, can crank up the pressure on VW by eventually staging 24-hour strikes and even open-ended ones.