VW compromise: No raises in exchange for employment
The Tagesschau portal reported that in exchange for maintaining jobs of employees at VW they have to give up wage increases in the coming years and agree to lowering the bonus.
According to Volkswagen employment reduction by over 35,000 places by 2030 will be carried out in a socially responsible manner. “We had three priorities in the negotiations: reducing excess production capacity in German plantsreducing labor costs and reducing development costs to a competitive level,” said Thomas Schaefer, head of the Volkswagen brand. “We have achieved real solutions for all three issues,” he emphasized.
Employee guarantees and works council support
The chairwoman of the VW works council, Daniela Cavallo, was quoted by the Tagesschau website as saying that a “solid solution” had been achieved in the most difficult economic conditions. “While there are concessions under the collective agreement that go beyond monthly income, this balances them out retaining all jobs achieved through solidarity; new job security until the end of 2030 and – no less important – certainty for the management that changes at Volkswagen against the will of employees are doomed to failure,” Cavallo emphasized.
Chancellor of Germany assessed the agreement as a “good, socially acceptable solution”. “Times are not easy for Volkswagen employees these days,” said Olaf Scholz, quoted by dpa.
Termination of the Dispute between IG Metall and Volkswagen
The agreement reached on Friday ends the multi-week dispute between the i concern the IG Metall trade unionwhich brings together Volkswagen employees. While the company demanded wage reductions and zero raises over the next two years, trade unionists demanded wage increases. Volkswagen has ten factories in Germany, six of which are located in Lower Saxony, three in Saxony and one in Hesse – recalled the Tagesschau portal.
From Munich Iwona Weidmann (PAP)
