Industrial consensus key part of German model
Volkswagen plant closure threat breaks taboos
Ruling coalition struggling to agree policy

BERLIN, Sept 6 Reuters Having lost cheap energy from Russia and facing uncertainty over its oncelucrative trade ties with China, big German business is now facing a crunch point over a third ingredient in its longtime formula for success consensual industrial relations.

Together, Germany39;s industry leaders, trade unions and politicians for decades sought and found agreement over production and labour decisions that in turn provided the underpinning for the country39;s postwar economic development.

Volkswagen39;s taboobreaking threat to shutter German factories for the first time ever is a direct test of whether that consensus model can survive and still deliver in a global environment some see as existentially challenging.

Deindustrialisation is happening in Germany, Volkswagen works council head Daniela Cavallo said this week, demanding solutions to ensure there will still be industrial jobs in Germany in the future.

Manufacturing still accounts for 27 of total employment in Germany down from 32 from 20 years ago, International Labour Organisation figures show, but still a far larger share than in most advanced economies.

About 120,000 of the VW brand39;s 200,000strong workforce is in Germany.

The same consensual structures for labour relations that over the years have bought industrial peace and provided job security will…