New VW company rate: 8.5 percent more wages in two steps – News – Lower Saxony

Status: 11/23/2022 1:51 PM

The breakthrough came in the third round: Volkswagen and IG Metall reached an agreement on a new collective labor agreement on Wednesday morning. Employees receive more money in two steps.

From June 2023, the approximately 125,000 employees and trainees in the six West German VW plants will receive 5.2 percent more wages. A further wage increase of 3.3 percent will follow from May 2024. According to IG Metall, the term of the collective labor agreement is 24 months. In addition, the employees will receive an inflation compensation bonus of 3,000 euros, which VW will pay in February 2023 for an amount of 2,000 euros and in January 2024 for an amount of 1,000 euros. Interns each receive half, IG Metall further announced.

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The partial retirement scheme will remain in effect until 2027

The employee side is showing positive reactions to the agreement. “There is broad satisfaction among the staff,” Daniela Cavallo, chairman of the works council, told NDR in Lower Saxony. It was possible to achieve good results “even with important issues such as partial retirement”. The new company collective agreement extends the good conditions for partial retirement until 2027. In addition, employees can buy six extra days off in exchange for part of their salary – how much that is was not stated.

VW: “The conclusion ensures sustainable planning certainty”

According to VW, the negotiations took more than 16 hours. “With the 24-month term, we have been able to achieve a very high level of planning certainty and stability for Volkswagen,” said VW negotiator Arne Meiswinkel from the NDR in Lower Saxony. The term is of particular importance in view of today’s “difficult environment”, says Meiswinkel. The VW corporate rate applies to permanent staff at the locations in Braunschweig, Emden, Hanover, Salzgitter, Wolfsburg and Kassel, as well as to permanent staff at some subsidiaries.

IG Metall speaks of “historically difficult times”

IG Metall had demanded an eight percent pay rise for about 125,000 employees, an extension of the partial retirement collective agreement, more days off for union members and the adoption of the semester rate for dual students at the company. “We have put together a collective bargaining package that is good and solid in historically difficult times and that addresses the issues and issues we addressed in this round of collective bargaining,” said Thorsten Gröger, chief negotiator at IG Metall.

More information

A person holds an IG Metall flag in the sun.  © photo alliance/dpa/Daniel Bockwoldt Photo: Daniel Bockwoldt

Accordingly, the employees would receive 8.5 percent more wages in two steps and a further 3,000 euros tax-free. (18-11-2022) more

VW Group Board member Oliver Blume © photo alliance/dpa/Volkswagen Photo: Roland Niepaul

The new Volkswagen management would have meant the end of the factory in Warmenau. (17-11-2022) more

The VW logo on the Volkswagen brand tower on the grounds of the VW factory in Wolfsburg © picture Alliance/dpa Photo: Julian Stratenschulte

IG Metall demands, among other things, eight percent more wages for the 125,000 employees. VW refers to immovables. (25.10.2022) more

District manager of IG Metall in Lower Saxony Thorsten Gröger speaks at a meeting.  © dpa-Bildfunk Photo: Moritz Frankenberg

The union is positioning itself for the collective bargaining round in the autumn. Salary should soon be converted into days off. (06/07/2022) more


Braunschweig Cathedral from above.  © NDR Photo: Julius Matuschik

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