Amid calls for pay hikes, Volkswagen proposes a 10 per cent wage cut to maintain profitability and avoid factory closures in Germany. Negotiations will resume on November 21 following a troubling financial report,

Volkswagen plans to close at least three factories in Germany, lay off tens of thousands of staff and downsize remaining plants in the country, the company’s employee group said Monday.

The auto maker’s top employee representative told workers that management planned to shutter three German factories to cut costs amid slumping sales.