VW's Plant Closure Plan Stalls Against German Labor Law

Volkswagen's plan to close four German factories hits a legal obstacle: a 1960s law requires two-thirds board approval for certain shutdowns. Labor unions, holding ten of nineteen board seats, now have blocking power. They can stop closures in Hanover and Emden. Only Zwickau and Neckarsulm escape this rule. Management's restructuring becomes negotiation rather than decree.