KUALA LUMPUR, Dec 4 (Bernama) -- Bursa Malaysia rallied to close broadly higher on Wednesday amid strong buying interests mainly in utility and technology stocks, with the benchmark index gaining 0.44 per cent. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 7.13 points to 1,614.09 from Tuesday’s close of 1,606.96. The index opened marginally higher at 1,606.97 and moved between 1,606.53 and 1,616.03 throughout the day. Advancers thumped decliners 727 to 381 on the broader market, with 522 counters unchanged, 781 untraded and 10 suspended. Turnover advanced to 3.60 billion units valued at RM3.30 billion versus 3.32 billion units valued at RM3.30 billion on Tuesday.
Volkswagen CEO Oliver Blume clashed with labour leaders during a heated staff meeting at the company’s Wolfsburg headquarters on Wednesday. The meeting, attended by around 20,000 workers and German Labour Minister Hubertus Heil, highlighted growing tensions over management’s push for cost-cutting measures amid escalating competition, particularly from China.
The Dispute
Blume called for urgent action to address price pressures and rising competition, emphasizing that plant closures and wage reductions are necessary to secure Volkswagen's future in Germany.
"The current situation is serious. New competitors are entering the market with unprecedented force. The price pressure is immense," Blume said, citing challenges in China, the company’s largest and most profitable market, where Volkswagen has recently lost ground.
However, union leaders and workers see these proposals as red lines and have threatened further strikes if closures remain part of wage negotiations.
Workers' Response
Labour council leader Daniela Cavallo, representing worker interests, accused Blume of failing to engage effectively in the conflict. She acknowledged the need for compromise but insisted sacrifices must be made across the board, including by management and shareholders.
"Concessions that hurt must apply to all sides," Cavallo said, emphasizing unions’ commitment to resolving the issue before Christmas while warning that unresolved conflicts could lead to more industrial action.
Background
Volkswagen is grappling with declining sales in China, once its most stable earnings contributor, and increasing price pressure from domestic Chinese automakers and Tesla. These challenges have prompted the company to reassess its cost structure, with German labour costs seen as a key issue.
Earlier this week, Volkswagen workers staged their first round of walkouts, underscoring the growing frustration among the company’s workforce.
What’s at Stake
- Labour Costs: Management argues that reducing costs is essential for Volkswagen to remain competitive globally.
- Plant Closures: A critical point of contention, with workers opposing any closures as part of negotiations.
- Compromise Deadline: Both sides are targeting a resolution before Christmas, with the next round of talks scheduled for Dec. 9.
Outlook
As one of Germany’s largest employers, Volkswagen’s internal struggles carry significant economic implications. A prolonged standoff risks further strikes and disruptions, potentially impacting production and sales during a critical period.
The outcome of the December talks will determine whether Volkswagen can navigate its current challenges or faces deeper conflict within its workforce.
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