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Skoda Auto unions reject salary freeze in VW cost-cutting drive
Original: VW's Skoda Auto unions reject salary freeze as part of group savings
Unions at Skoda Auto, Volkswagen's Czech subsidiary, have rejected a proposed salary freeze that formed part of the German group's wider savings programme. The refusal adds friction to VW's efforts to cut costs across its brands amid pressure on the European car industry, and sets up tough negotiations between management and worker representatives over where the savings should come from.
Why now: Volkswagen is pressing ahead with group-wide cost cuts, and union resistance at Skoda signals a fresh labour dispute over who bears the burden.
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