Volkswagen and its IG Metall union have agreed a two-stage pay deal that will see staff receive 3.4% from September this year and 2.2% in July, 2014.
The automaker will also make an additional contribution to company pension arrangements. For employees covered by the collective bargaining agreement, a one-time payment of EUR300 (US$386) will be made to the company pension scheme.
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For apprentices and dual-study programme students, Volkswagen will pay a monthly contribution of EUR27.
“Employees are receiving a good pay increase,” said Volkswagen human resources board member, Horst Neumann.
“In addition, Volkswagen is improving company pension arrangements for its workforce, particularly with reference to young employees. However, it is also clear this collective bargaining agreement stretches us to the limit of what is possible in light of the difficult market situation in Europe and tough international competition.”
The collective bargaining agreement covers 102,000 employees at the plants in Wolfsburg, Brunswick, Hanover, Salzgitter, Emden and Kassel as well as Volkswagen Financial Services.
“Volkswagen and IG Metall have catered for the fact that competition in the automobile industry is getting tougher and tougher against the backdrop of a sharp slump in the overall automobile market in Europe,” said Volkswagen chief negotiator Martin Rosik, head of human resources at Volkswagen Passenger Cars.
“The pay rise is oriented to economic performance in this sector. That is crucial for the competitiveness of Volkswagen’s sites in Germany.”
The new collective bargaining agreement has a term of 20 months from 1 July, 2013 to 28 February, 2015.
“This term remains closely aligned to the sector’s collective bargaining agreement and is a clear sign our company agreement is oriented to sector-wide competition,” said Rosik.
IG Metall and Volkswagen also agreed to analyse economic conditions in May, 2014. If the economic situation at that time permits, negotiations will be held to establish whether a further one-time benefit payment financed by the company is possible.
