Volkswagen has informed IG Metall union leaders that it is ending a labor agreement that protected workers from layoffs, The New York Times’ Melissa Eddy reports. The automaker warned last week that it needed to restructure its namesake brand to remain competitive and now says that the decision to quit the labor agreement is necessary to ensure the company’s future. “We must put Volkswagen in a position to reduce costs in Germany to a competitive level in order to invest in new technologies and new products from our own resources,” Gunnar Kilian, the head of human resources and labor at Volkswagen, said in the statement. IG Metall covers workers in the automotive and other heavy industries and has existed since 1994. Daniela Cavallo, who heads the works council at Volkswagen and is a member of IG Metall, has vowed that the union would fight to defend the labor agreement.
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