VW rejects union’s salary offer

Europe’s largest car manufacturer, Volkswagen, has rejected a trade union offer to limit workers’ pay rises, saying it does not go far enough. Talks are currently in place, but the threat of strike action now looms large as unions say the chances of reaching agreement are small. Volkswagen is the latest German firm to take on the unions as it looks to cut costs as competition intensifies. Volkswagen has warned that 30,000 jobs could be lost at its six German plants unless staff accept a two-year pay freeze.