Volkswagen Workers Threaten Historic Battle Over Carmaker's $18 Billion Cost Cut Push

Battle of VW Workers: Unions on Wednesday threatened a far-reaching escalation of a dispute with Volkswagen over what y estimate to be over 17 billion euros ($18 billion) in planned cost cuts, raising spectre of strikes at a time of turmoil for German industry.

comments come a day ahe of a third round of crunch talks between workers and management over pay cuts and factory shutdowns in Germany in fiercest dispute in years at Europe's biggest automaker, which is reeling from high costs and Chinese competition.

Workers are prepared to make concessions worth 1.5 billion euros in savings in ongoing negotiations, but said this was contingent on Volkswagen ruling out plant closures as well as stakeholders, including company's controlling Porsche and Piech families, pitching in.

Thorsten Groeger, who les negotiations for IG Metall union, said orwise Volkswagen workers would enter a conflict with company " likes of which this republic has not seen for deces".

Strikes at majority of carmaker's German sites, which are at heart of conflict, are possible from December 1.

Volkswagen has said deep cuts at its core VW brand are needed to make it fit for future, asking for a 10 per cent pay cut and not ruling out plant closures, which union said are part of all scenarios presented by management.

An internal memo drawn up by Volkswagen's works council, reviewed by Reuters, shows company spends a higher proportion of sales on labour costs than major rivals.

concessions from IG Metall and works council are part of a package of proposals laid out on Wednesday aimed at reducing impact of cuts on workers.

" problems that we have are not created by workforce and will not be solved by only looking at labour costs. Yet we are rey to make a contribution with what we have laid out here today," Groeger said.