Management at Volkswagen and union leaders Wednesday reached a compromise in their marathon wage talks, an official of the IG Metall labour union said. Details of the agreement at the negotiations, in which Europe's largest car maker has been seeking drastic cost reductions, were not immediately known. Sources at the talks in Hanover had earlier indicated the two sides were close to a compromise on the issue of job guarantees for 103,000 workers at six Volkswagen works in western Germany. Tens of thousands of Volkswagen have been taking part in warning strikes to press their claims for job guarantees plus a 2-per-cent wage rise. Volkswagen, which is seeking to reduce its labour costs by 2 billion euro, or 30 per cent, wants a two-year wage freeze.
