IG Metall, Volkswagen Agreement Averts Site Closures, Forced Redundancies

By Sarah Sloat and Andrea Figueras

Volkswagen and labor representatives struck an agreement Friday on cost savings aimed at restoring competitiveness at the German auto company, the IG Metall union said.

Following weeks of negotiations punctuated by strikes, the German union and the Volkswagen workers' council said that the deal would avert plant closures and forced redundancies but that employees would have to make some concessions on pay.

Write to Sarah Sloat at sarah.sloat@wsj.com