BERLIN -- Volkswagen Group's cost-cutting deal with unions was left in limbo after talks between labor leaders and top executives over the implementation of the turnaround plan were broken off on Monday without an agreement, the works council said.
"We would welcome if the group's management would more strongly deal with the implementation of the future pact and the compliance with agreements," a works council spokesman said by email.
Works council chief Bernd Osterloh and fellow labor leaders last week halted cooperation with top managers on issues such as overtime work and apprenticeships after accusing VW brand chief Herbert Diess of pushing for greater savings than agreed in November in a so-called "future pact" to lift profitability at VW's core division.
Osterloh has repeatedly clashed with Diess over how to achieve greater savings to help fund a strategy shift and cope with the costs of the carmaker's emissions scandal.
A VW brand spokesman didn't return calls seeking comment
VW earlier said it will not keep a large number of temporary workers on its books in Germany following a report which said the automaker's VW brand would retain about 2,000 of them. Business daily Handelsblatt, citing unnamed sources, said on Sunday that VW has pledged to keep about 2,000 temporary workers on its books.
A VW spokesman on Sunday declined to comment on the report but referred to a letter by Diess distributed to staff this week. "We regret that we cannot keep on board temporary workers the way we used to: The company's economic situation is giving us little room at present. Retaining temporary workers in a larger way would once again raise the pressure for cutbacks in the core workforce," Diess said in the letter dated Feb. 10.
VW has said it stands by the future pact but predicts tension between management and the workforce regarding its implementation.
VW is under pressure to make cuts at high-cost operations in Germany to fund a shift to electric cars and mobility services as it tries to move on from its emissions scandal, while still grappling with billions of euros in related costs.