Volkswagen and the IG Metall union have agreed a 4.2% pay rise that will affect 95,000 staff in six western German plants.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more


The union had threatened industrial action if the deal was not finalised on Monday.


The pay rise will come into force on 1 January and is part of an 18-month deal which runs until the end of January 2011.


The deal will also introduce performance-related pay which could be worth as much as EUR100 (US$147) a month from 2011.


It’s the first time that VW and IG Metall have agreed to performance-related pay, details of which will be worked out over the next 11 months.

GlobalData Strategic Intelligence

US Tariffs are shifting - will you react or anticipate?

Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.

By GlobalData

The 4.2% pay rise is in line with what workers elsewhere in the German engineering sector are getting.

Just Auto Excellence Awards - Have you nominated?

Nominations are now open for the prestigious Just Auto Excellence Awards - one of the industry's most recognised programmes celebrating innovation, leadership, and impact. This is your chance to showcase your achievements, highlight industry advancements, and gain global recognition. Don't miss the opportunity to be honoured among the best - submit your nomination today!

Nominate Now