Volkswagen strikes wage deal with union; to outline new strategy in mid-June

German car-maker Volkswagen AG reached a wage agreement with the labor unions in Germany which represented around 120,000 of its workers, in line with union agreements in the region.

The company would increase worker pay by a total of 4.8%, which would be staggered in two phases, coming close to the union’s demand for a pay rise of around 5%. The wage pact is valid for 20 months.

The agreement with unions comes on the back of last week’s worker’s strike at VW’s plants in Wolfsburg, Kassel, Braunschweig and Salzgitter after the car maker failed to make a wage offer.

As per the new agreement, workers would receive a 2.8% wage hike in September 2016, followed by another 2% rise in August 2017, and concessions on profit-sharing and pensions, including partial early retirement.

Separately, Volkswagen’s Chief Executive Matthias Mueller plans to announce a new strategy in mid-June 2016 for its core autos business that it hopes would boost its profitability by 2025 once it emerges from the emissions scandal.

Source: WSJ & Reuters

Advertisements

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s