VW Works Council Proposal Probably Falls Short of Management Hopes -- Market Talk

Dow Jones2024-11-21

1422 GMT - The 1.5 billion euro labor cost cut proposal from Volkswagen's works council is some way off what management probably hopes to achieve, Stifel analyst Daniel Schwarz writes. The offer is based on future wage increases that will not be paid and a reduction in future bonus payments. In exchange, the unions demand job security and no plant closures. The proposal was made yesterday ahead of further talks today. The unions also say shareholders must contribute, meaning the dividend policy must be adjusted. This is negative for Porsche Holding, which receives dividends from VW, Stifel says. "Overall, clearly no breakthrough yet. On the positive side, the unions acknowledge the need to cut cost and continue talks." Shares fall 0.7% to 83.70 euros. (dominic.chopping@wsj.com)

(END) Dow Jones Newswires

November 21, 2024 09:22 ET (14:22 GMT)

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The unions also say shareholders must contribute, meaning the dividend policy must be adjusted. This is negative for Porsche Holding, which receives dividends from VW, Stifel says. \"Overall, clearly no breakthrough yet. On the positive side, the unions acknowledge the need to cut cost and continue talks.\" Shares fall 0.7% to 83.70 euros. 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The offer is ...</p>\n\n<a href=\"https://dowjonesnews.com/newdjn/logon.aspx?AL=N\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"VWAPY","symbol_name":"Volkswagen AG","start_time":0,"source_url":"https://dowjonesnews.com/newdjn/logon.aspx?AL=N","article_id":"2485006494","we_media_id":"106","thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2485006494","pubTimestamp":1732198920,"columns":[],"sourceInfo":null,"weMediaInfo":{"media_name":"Dow Jones","introduction":"Dow Jones publishes the world’s most trusted business news and financial information in a variety of media.","home_visible":0,"id":"106","head_image":"https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99"},"summary":"1422 GMT - The 1.5 billion euro labor cost cut proposal from Volkswagen's works council is some way off what management probably hopes to achieve, Stifel analyst Daniel Schwarz writes. The offer is based on future wage increases that will not be paid and a reduction in future bonus payments. In exchange, the unions demand job security and no plant closures. The proposal was made yesterday ahead of further talks today. The unions also say shareholders must contribute, meaning the dividend policy must be adjusted. This is negative for Porsche Holding, which receives dividends from VW, Stifel says. \"Overall, clearly no breakthrough yet. On the positive side, the unions acknowledge the need to cut cost and continue talks.\" Shares fall 0.7% to 83.70 euros. 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On the positive side, the unions acknowledge the need to cut cost and continue talks.\" Shares fall 0.7% to 83.70 euros. 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