Wage negotiations taking place today at Volkswagen are likely to determine whether the company's six German plants will face their first full-scale strikes over pay.

VW hopes the talks over a new two-year wage settlement will lead to a 30% cut in labour costs by 2011. IG Metall, the engineering trade union, called on the company to compromise on its cost-cutting package. This includes a wage freeze, new pay scales that include lower wages for new employees, and more flexible working hours.

(Source: ft.com)