Union representatives have expressed satisfaction at today’s conclusion of pay negotiations that will see Volkswagen‘s 100,000 German workers receive a 3.2% wage increase, despite putting in a 6% claim.

The deal – that is considerably above Germany’s inflation rate of between 1.2% and 2% – was finally settled after mammoth three-day talks that concluded in 13-hour negotiations yesterday in Hanover between VW and the IG Metall union.

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

“I think it is a good agreement between the unions and Volkswagen – the other factories for the automobile industry pay 2.7%,” an IG Metall spokesman for Lower Saxony in Hanover told just-auto.

“We asked for 6% – it was too high for Volkswagen and it was very difficult for us to get 3.2%. Yesterday, we talked [for] 13 hours and it was the third day of talks. It is a good situation at Volkswagen – I think there will be very stable industrial relations.”

The pay rise applies to VW’s 95,000 autoworkers and 5,000 employees in its Financial Services division and is for 16 months until the end of May 2012.

See Also:

As well as the base pay rise, VW employees will also receive a one-time payment of 1% with a minimum of EUR500 (US$683).

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

“The company and IG Metall have found a fair solution that offers a very decent rise in pay while preserving competitiveness,” said VW human resources board member Horst Neumann, adding Volkswagen’s collective agreement would continue to take its orientation from the regional collective wage agreement for the metal industry.

The pay rise will take effect from 1 May, which is eight months earlier than planned said Volkswagen.

The new company collective agreement applies to the VW factories in Wolfsburg, Braunschweig, Hanover, Salzgitter, Kassel and Emden.

VW Financial Services subsidiaries AutoVision, Sitech, Autostadt, Volkswagen Immobilien and Wolfsburg are also included.