Volkswagen: Significantly higher wages and full inflation bonus for employees

Created: 11/23/2022, 11:14 am

By: Lisa Mayerhofer

The car manufacturer Volkswagen and the IG Metall trade union have agreed on a new collective agreement for around 125,000 employees.

(Archive image) © Swen Pförtner/dpa pool/dpa

The car manufacturer Volkswagen and the IG Metall trade union have agreed on a new collective agreement for around 125,000 employees.

In addition to wage increases, there is also an inflation premium.

Wolfsburg – The Volkswagen employees in West Germany get more money.

The IG Metall trade union and the group's negotiators reached an agreement on a new company collective agreement on Wednesday night after twelve hours of negotiations, as both sides announced.

In two steps there is a total of 8.5 percent more money, plus an inflation adjustment of a total of 3000 euros.

The conclusion is thus based on the pilot agreement in the metal and electrical industry that was reached in Baden-Württemberg last week.

Volkswagen: Inflation bonus for employees in two stages

According to the agreement, there will be an increase in wages of 5.2 percent from June 2023 and another 3.3 percent in May 2024.

The inflation compensation is to be paid out in two stages of 2000 euros in the coming year and 1000 euros in the following year - trainees each get half.

The new company tariff applies to employees at the six west German locations in Braunschweig, Emden, Hanover, Kassel, Salzgitter and Wolfsburg and has a term of 24 months.

The collective agreement on partial retirement was extended until the end of 2027, the 1,400 new training positions per year that had previously been stipulated remained untouched.

Both sides also agreed on a new scholarship program called "Volkswagen Master", which is aimed at students with a bachelor's degree.

VW: Term of more than 24 months should give employees planning security

In the third round of negotiations, Volkswagen "finally gave in" and presented an offer "that could be negotiated," explained IG Metall negotiator Thorsten Gröger.

"Collective bargaining alone cannot fully absorb the dynamics of inflation, but with our agreement we are making a contribution in historically difficult times so that employees can get through the crisis better."

VW negotiator Arne Meiswinkel praised the term of 24 months, which brings "long-term planning security and stability".

The financial statements thus take into account the “extraordinarily demanding and persistently volatile macroeconomic environment”.

Nevertheless, the conclusion "must not hide the fact that we must continue to keep our costs strictly under control".