Rapprochement between Volkswagen and union in wage talks, sources say

(Reuters) – There has been rapprochement between Volkswagen (ETR:) and the IG Metall union during the longest-ever talks over pay and job security, sources close to the negotiations told Reuters on Friday, without providing further details.

The fifth round of negotiations has been under way since Monday.

Europe’s biggest carmaker has been in high stakes talks with labour represenatives over cost-cutting measures that Volkswagen says are necessary to remain competitive against foreign competitors.

Around 100,000 workers have already staged two separate strikes in the past month, the largest in Volkswagen’s history, protesting against management plans to cut wages, reduce capacity and potentially shut German plants for the first time.

The crisis has hit at a time of uncertainty and political upheaval in Europe’s largest economy, as well as wider turmoil among the region’s automakers.