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.
“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.”
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).
“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 .