Industrial relations remain tense at Volkswagen where the management’s plan of implementing drastic cost-cutting measures is clashing with union demands, including a 7% pay rise. Both sides met at Hanover’s Herrenhausen Palace on Wednesday, where collective bargaining negotiations turned into talks about strict austerity measures. Ahead of the talks, chief negotiator Daniela Cavallo, head of Volkswagen Group (VW) Works Council said talks over job security were “non-negotiable”. Arne Meiswinkel, VW’s chief negotiator put the company’s viewpoint across, saying: “The situation at our home locatio…