German Manager Magazine: Volkswagen grants US employees a hefty wage increase002899

Increased after the collective bargaining agreement between the three major US car manufacturers and the UAW union Volkswagen the wages of employees at the Chattanooga plant. The increase will come into force from December as part of the annual assessment of remuneration, the car manufacturer said on Wednesday. “This ensures that we can continue to offer a competitive and comprehensive compensation package.” Volkswagen, as well as other foreign manufacturers and Tesla, has in the USA no collective agreement with the union.

After the successful conclusion, the automobile workers’ union wants to make a new attempt to win members from foreign car manufacturers and to enforce collective bargaining. In the past, it did not achieve a majority of employees when voting on this issue.

Similar to VW, other tariff-free car companies also raised the wages of employees in their US factories. Honda will also increase by 11 percent from January, Nissan wants to pay 10 percent more Toyota the hourly wage increases by nine percent. Hyundai committed itself to a long-term wage increase of 25 percent by 2028, similar to that of US companies.

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