Volkswagen looks set to face strikes if negotiations between company officials and trade unions fail to produce a break-through in the coming day. Local media have reported that the first phase of the industrial action would be a 5-hour warning strike, possibly taking place as early as Thursday. The unions have rejected plans to reduce their wages by 4 percent by reducing the number of hours they work. As many as 2,500 employees could end up taking part in the warning strike. Volkswagen claims the new working agreements would have raised real salaries by 5 percent.