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March 11, 2020

VW Germany workers beat Daimler’s with annual bonus

Volkswagen workers covered by collective bargaining agreements will receive a performance-related bonus of EUR4,950.

By Olly Wehring

Volkswagen workers covered by collective bargaining agreements will receive a performance-related bonus of EUR4,950.

CEO Herbert Diess said: "The employees of Volkswagen again demonstrated a strong team performance in 2019. They have made a key contribution to the business success of VW. With the bonus under the collective bargaining agreement, we wish to thank them for their commitment and to allow each individual employee to participate in the success of the company."

Works council chief Bernd Osterloh said: "2019 was another tough year for our colleagues. But once again, they got down to work to bring VW forward again. It is therefore only fair that the employees should now have their share in the company's success. They have earned it."

But chief Gunnar Kilian warned: "This bonus reflects the successful year of 2019. For 2020, it is clear that expectations may be more limited. The transformation will call for dedication, flexibility and efficiency. Not only in view of coronavirus, the economy and therefore also VW face a highly challenging year."

The bonus was based on a two year calculation period laid down in collective bargaining agreements.

Of the latest bonus, employees covered by collective bargaining agreements already received EUR1,690.50 with their salary for November 2019.

The balance of EUR3,259.50 will be paid with salary for May.

Daimler said last month employees would see a bonus in their pay packets despite a 2019 net profit down 64%.

Around 130,000 workers would receive a profit share of up to EUR597 and a one-time 'appreciation' bonus of up to EUR500, the automaker said.

The bonus would be paid in April.

The 2019 operating profit (EBIT) of EUR4.3bn was 61% below 2018's EUR11.1bn so the 2019 bonus was consequently much lower than the EUR4,965 paid out for 2018.

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