Volkswagen's works council head Bernd Osterloh is reported to have rejected an invitation to talks with Porsche SE to end a dispute between labour and management at VW's future owner.

Osterloh told Reuters at the weekend that Porsche CEO Wendelin Wiedeking had blocked a potential agreement for 12 months and that if the CEO did not change course on the issue there would be "no more talks".

A Porsche spokesman told just-auto he understood a meeting was scheduled for next month but said the automaker was not commenting.

It was "purely a works council issue", he added. "We at Porsche AG are not involved in that."

Porsche had confirmed earlier to Reuters a report in Focus magazine that it had invited VW's works council, headed by Osterloh, to a conciliatory meeting with its own works council chief Uwe Hueck and IG Metall union head Berthold Huber on 10 September in Frankfurt. Hueck also confirmed the meeting and date with German newswire dpa.

Another Porsche spokesman had said the sports car maker was counting on Osterloh attending "otherwise such a meeting doesn't make sense".

Porsche's leading union official that a conciliatory meeting will take place in Frankfurt on September 10, confirming a report in Focus.

Porsche is expected to acquire majority control of VW as early as next month but industry observers regard cool relations between VW's highly unionised workers and Wiedeking as one of the last main obstacles to a successful integration of the volume car maker and the premium sports car specialist.

The issue, which has been festering between the rival works councild for over a year, is the fact that the Porsche Holding supervisory board is constituted so that when Porsche takes a majority shareholding in Volkswagen (it has about 31% now, just-auto understands, and is seeking EU approval to boost this to around 35%), it will consist of three Porsche employee representatives, and three Volkswagen representatives. Volkswagen's works council is unhappy with this given that Porsche has only about just 12,000 workers while Volkswagen has around 324,000.

Porsche chief Wendelin Wiedeking and Porsche works council head Uwe Hueck have defended the current position, given that Porsche currently only owns 31% of Volkswagen.

Separately, Focus said VW CEO Martin Winterkorn would take on an additional role of board member in the Porsche Automobil holding company, according to Reuters.