Volkswagen, the workers’ representatives reached a wage agreement after difficult negotiations

FRANKFURT, Germany (AP) – Volkswagen workers’ representatives said Friday they had reached a wage deal that ends management’s proposals to close plants in Germany and curb automatic layoffs by 2030.

The company said the deal includes provisions to cut more than 35,000 jobs in “social care” ways by 2030, dpa news agency reported.

Union representatives and workers were expected to hold simultaneous news conferences on Friday to outline the details of the agreement reached after nearly 60 hours of negotiations this week as both sides pushed to reach an agreement before the Christmas holidays.

Thorsten Groeger, spokesman for the IG Metall union, said the workers also accepted “painful agreements.” The union’s statement said the loss of bonus payments and other incentives is part of the agreement but monthly wage levels will not be affected. forced to cut wages by 10%.

Volkswagen argues that it must reduce costs in Germany to the levels achieved by competitors and Volkswagen plants in eastern Europe and South America. The company had demanded a 10% pay cut for its 120,000 German workers and said it would not be able to avoid wasting energy at a redundant plant.

The company is facing declining demand in Europe, higher costs and increasing competition from Chinese automakers. Volkswagen is building factories to supply the European car market of 16 million a year, but now faces a demand of around 14 million, the company said. That means a loss of 500,000 cars a year, or the production of two factories.