Breakdown at Skoda

Collective-bargaining talks at Škoda Auto are usually accompanied by threats and ultimatums from one or the other side, but a reasonable deal is always struck. This year could be different. The German management seems to be washing its hands of the situation. Personnel Director Martin Jahn, who is leading negotiations for Škoda, has received more public support from President Václav KIaus than he has from his own CEO, Detlef Wittig. Klaus said the unions could force Škoda to move East if their demands are too great. Wittig said somewhat ominously in MFD that the negotiations are a "big challenge" for Jahn. It's looking increasingly possible that Wittig intends to use a collapse of wage negotiations and a subsequent strike to impose layoffs or other drastic changes that would be difficult without a crisis. And Jahn, as the sole Czech on the board, would be there to do the explaining. [Czech Republic Germany VW Volkswagen MF Dnes]